In this week’s blog, loan application specialist, Nuala McGowan, ACA, CPA, AIA looks at the Micro Finance Ireland’s dedicated Agri Loan, which is aimed at farmers and agricultural businesses that need finance but have been unable to secure it from a bank or another mainstream lender.

It’s designed to fill a funding gap for viable farm businesses rather than replace traditional agricultural lending.

Who can apply?

The Agri Loan is intended for businesses that:

  • Are based in the Republic of Ireland.
  • Operate in agriculture or forestry and report to the Department of Agriculture, Food and the Marine (DAFM).
  • Fall under NACE codes A01 (crop and animal production) or A02 (forestry and logging).
  • Employ fewer than 10 full-time employees.
  • Have annual turnover below €2 million.
  • Have been unable to obtain finance from a bank or other lender (MFI may ask for evidence of this).

Loan features

The Agri Loan offers:

  • Loan amounts: €2,000 to €50,000
  • Term: Up to 5 years
  • Interest rate: 6.5% fixed, or 5.5% if you apply through your Local Enterprise Office (LEO)
  • Fees: No application fees or hidden charges
  • Repayments: Fixed monthly repayments, providing certainty over borrowing costs.

What can it be used for?

The funding is flexible and can support a range of business purposes, including:

  • Purchasing livestock
  • Farm machinery and equipment
  • Farm improvements and expansion
  • Working capital and cash flow
  • Other investments that strengthen or grow the farming business.

Security requirements

One advantage compared with many traditional business loans is that:

  • MFI does not require asset security for its standard loans.
  • If borrowing through a limited company, directors or shareholders are generally required to sign a personal indemnity.

Application requirements

Applicants should be prepared to provide:

  • A completed loan application.
  • An agricultural cash-flow forecast (MFI provides templates tailored to different farming enterprises).
  • Six months of personal and business bank statements.
  • Recent management or financial accounts (for established businesses).
  • A Central Credit Register (CCR) report for shareholders or partners where applicable.

Is it a good fit?

The MFI Agri Loan can be particularly useful if you:

  • Need a relatively modest amount of finance (up to €50,000).
  • Are starting or diversifying an agricultural enterprise.
  • Have a sound business case but don’t meet a bank’s lending criteria.
  • Need working capital during periods of seasonal cash-flow pressure.

For larger investments—such as purchasing farmland, constructing major buildings, or borrowing several hundred thousand euro—traditional agricultural lenders are generally more suitable.

If you’re considering the MFI route, contact Nuala on 086 0352849