Oral Answers to Questions — Loans to Farmers.

– in the House of Commons on 24th March 1925.

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Photo of Mr George Bowyer Mr George Bowyer , Buckingham

59.

asked the Financial Secretary to the Treasury how many applications for loans from farmers are now being considered by the Public Works Loan Board; what is the average delay between the receipt of application and the decision to lend; how many such applications have been agreed to and turned down, respectively; and what is the average charge per 100 lent to the farmers?

Mr. GUINNESS:

864 applications have been granted and 25 refused in the 18 months since the scheme started. Fresh applications are received at the rate of about 24 a month. No avoidable delay occurs on the part of the Public Works Loan Board in dealing with applications, and the time taken in any particular case naturally depends partly on the promptitude with which the Board's inquiries are answered The fees charged by the Board are in accordance with a scale which I will circulate in the OFFICIAL REPORT. No charge is made for the necessary valuations of property which have to be made.

Following is the scale:

SCALE OF FEES CHARGED BY THE PUBLIC WORKS LOAN COMMISSIONERS IN RESPECT OF LOANS SECURED ON PROPERTY IN ENGLAND AND WALES.

The fees or sums to be paid by the applicants in respect of loans shall not exceed the following sums, namely:

  • For the first £1,000, 20s. for every £100 of such loan.
  • For the second £1,000, 15s. for every £100 of such loan.
  • For the third and fourth £1,000, 10s. for every £100 of such loan.
  • For the fifth to the tenth £1,000, 5s. for every £100 of such loan.
  • For each subsequent £1,000 up to £100,000, 2s. 6d. for every £100 of such loan.
  • Loans exceeding £100,000 to be charged as £100,000.

Where a loan is advanced by instalments secured by one deed, there shall be paid in respect of each advance after the first, an additional fee of £1 if the amount of the advance does not exceed £100, and an additional fee of £2 if the amount of the advance exceeds £100.

The total amount to be advanced under one security deed shall be considered as a loan; and fractional parts of £100 shall be considered as £100.

In addition to the above fees, the applicants shall pay the Stamp Duty, counsel's fees (if any), and other disbursements incurred by the Loan Commissioners in respect of the several applications.