Fresh from receiving its government guarantee, Marac Finance has cut its 3 month, 6 month and 12 month debenture rates by 30 to 50 basis points to 7.95%, 7.50% and 8.25% respectively. Meanwhile South Canterbury Finance, the other remaining large finance company, has also slashed its key debenture rates by as much as 150 basis points. A full list of interest rates up to 1 year is here. Marac has also cut its 18 month rate to 7.5%, which compares with around 6.5% for the major banks and 8.3% for South Canterbury Finance. The Timaru based financier cut its 2 year debenture rate from 10% to 8.6%, suggesting it has filled its coffers and quality lending opportunities are drying up. All the rates beyond 1 year are here.* This article was first published yesterday in our daily subscription newsletter for the banking and finance industries. The email costs NZ$365 per annum and carries exclusive news and analysis for New Zealand banking and finance industry executives, regulators and investors. Sign up for a free trial here.
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