Terms of repayment
9 Terms of repayment
The term of a loan under the scheme is the term decided by the authority up to a maximum of 10 years.
The amounts of the repayments of principal and interest under the loan are the amounts decided by the authority, subject to subsections (3) and (4).
The authority may—
review an applicant’s financial situation annually to decide whether or not to increase the interest rate charged for the loan; and
if the authority considers the applicant’s financial situation has improved—increase the interest rate up to a commercial rate of interest.
The authority may allow deferral of repayments of the principal under the loan for up to 2 years, if the principal and interest are repaid over the balance of the approved term of the loan.
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