Rural Utilities Loan Interest Rates

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Hardship Loan Rate

On November 1, 1993, the Rural Electrification Loan Restructuring Act, Pub. L. 103-129, 107 Stat. 1356, (RELRA) amended the Rural Electrification Act of 1936, 7 U.S.C. 901 et seq., (RE Act) to establish a new interest rate structure for insured electric loans. Insured electric loans approved on or after this date, are either municipal rate loans or hardship rate loans. Borrowers meeting the criteria set forth in §1714.8 are eligible for 5 percent hardship rate loans.


Treasury and Federal Financing Bank (FFB) Rates

The following list of interest rates for loans shall not constitute an offer or commitment to make a loan at these rates. The interest rates listed are illustrative only of the rates that would apply to funds advanced on the date identified here as the "Issue Date." These rates change daily.        

 

    APPROXIMATE FEDERAL FINANCING BANK LOAN RATES WITH CALL OPTIONS

    30-Year Level Principal and Interest

    Issue Date:       08/26/2016

    Yield Curve Date: 08/25/2016

    Maturity Date:    10/01/2046

 

    Callable Immediately (Par)

    Eff. FFB Rate with Option:    4.362% Qtr.

    Call Option Pricing Spread    2.421

 

    Callable Immediately (5% decreasing)

    Eff. FFB Rate with Option:    3.072% Qtr.

    Call Option Pricing Spread    1.130

 

    Callable Immediately (10% decreasing)

    Eff. FFB Rate with Option:    2.607% Qtr.

    Call Option Pricing Spread    0.666

 

    5-Year Call Date: 09/30/2021

 

    5-Year No Call (Par)

    Eff. FFB Rate with Option:    2.812% Qtr.

    Call Option Pricing Spread    0.870

 

    5-Year No Call (5% decreasing)

    Eff. FFB Rate with Option:    2.543% Qtr.

    Call Option Pricing Spread    0.602

 

    5-Year No Call (10% decreasing)

    Eff. FFB Rate with Option:    2.308% Qtr.

    Call Option Pricing Spread    0.367

 

    ISSUE DATE:  08/26/16

    08/25/16 TREASURY YIELD CURVE SEMIANNUAL RATES

    3-mo   6-mo   1-yr   2-yr   3-yr   5-yr   7-yr  10-yr  20-yr  30-yr

    0.33   0.46   0.60   0.78   0.89   1.16   1.43   1.58   1.91   2.27

 

    APPROXIMATE FFB QUARTERLY RATES*

    3-mo   6-mo   1-yr   2-yr   3-yr   5-yr   7-yr  10-yr  20-yr  30-yr

    0.34   0.49   0.61   0.79   0.90   1.15   1.40   1.54   1.80   1.94

 

    SPECIAL ADVISORY FOR RUS TREASURY LOAN PROGRAM

    Approximate Treasury Monthly Rates (Immediate 1st principal payment)**

    1-yr   2-yr   3-yr   5-yr   7-yr  10-yr  20-yr  30-yr

    0.61   0.79   0.90   1.15   1.40   1.53   1.80   1.93

 

   Approximate Treasury Monthly Rates (1st principal payment in 2 years)**

    1-yr   2-yr   3-yr   5-yr   7-yr  10-yr  20-yr  30-yr

    0.62   0.79   0.90   1.15   1.41   1.54   1.80   1.94

  

*These approximate FFB rates are based upon a common type of RUS loan in which the quarterly loan payments are derived by amortizing over 30 years, but the loan matures with a balloon payment at the maturity indicated in the column heading (for example, 10 years).  The column headings are approximate maturity terms, since the loans end on quarterly payment dates.

**These approximate Treasury loan rates are based upon a type of RUS loan in which the monthly loan payments are derived by amortizing over 30 years, but the loan matures with a balloon payment at the maturity indicated in the column heading (for example, 10 years).  The column headings are approximate maturity terms, since the loans end on monthly payment dates.

This list of interest rates for loans and pricing spreads for call options shall not constitute an offer or commitment to make a loan at these rates or to provide call options at these spreads.

The interest rates and pricing spreads listed here are illustrative only of the rates and spreads that would apply to loans made on the date identified here as the "Issue Date" and would not apply to loans made on any other date.

 

Track our progress in loan making throughout the fiscal year by looking at the latest BoxScore. This document displays details of the various Electric Program loan offerings.

For information as to available "Call Options" and their associated pricing spreads, please contact the Electric Program directly (RUS Contacts).

To obtain the latest Federal Reserve Statistical Release of daily interest rates, you may use this link to go to the Federal Reserve Bank, where that information is available.


Municipal Interest Rates for the 3rd Quarter of CY 2016

In accordance with 7 CFR 1714.5, the interest rates are established as shown in the following table for all interest rate terms that begin at any time during the third quarter of calendar year 2016.

 Municipal Interest Rates 
for the Third Quarter of 2016
Interest Rate Term
Ends in (year...)
RUS rate
(0.000 percent)
2017 0.625
2018 0.750
2019 0.875
2020 1.000
2021 1.125
2022 1.375
2023 1.500
2024 1.625
2025 1.750
2026 1.875
2027 2.000
2028 2.000
2029 2.125
2030 2.125
2031 2.250
2032 2.250
2033 2.375
2034 2.375
2035 2.500
2036 2.500
2037 or later 2.750