ANZ increases its business loan interest rates
The Big Four lender announced the increase despite pressure over unfair small business lending practices.
ANZ has today announced a 0.8% increase in its business loan variable rate indices, along with increases in investor home lending and interest-only home lending. While the home loan interest rate changes may be welcomed as the banks attempt to mitigate the housing affordability crisis, the business loan rate changes may not be so well received.
The Big Four have only just finished their most recent inquiry into small business lending, with unfair contract terms and insufficient loan caps being brought into question.
Following the inquiry, the government made 15 recommendations to improve small business lending, most of which have implementation dates of July this year. However, despite the recommendations and the inquiries, it appears the powers that be still weren't confident in the bank's ability to change.
Earlier this month, the Australian Securities and Investments Commission (ASIC) and the Australian Small Business and Family Enterprise Ombudsmen (ASBFEO) teamed up to put pressure on the banks to comply with a newly introduced law to make contract terms fairer and easier to understand.
While it remains to be seen whether the mounting pressure and intense scrutiny will change the banks' tune towards small businesses, the good news for SMEs is that fintech has diversified the business loans market.
Find out what business loan options are available and start a comparison.