Australia's largest business bank, NAB, announced a reduction in interest rates on eligible business lending products by 0.25% per annum. This move follows the Reserve Bank of Australia's decision to lower the cash rate by the same margin.
Effective from May 30, 2025, new and existing business customers with a variable rate NAB Business Options Loan or a NAB Business Overdraft product will benefit from this interest rate cut.
Michael Saadie, NAB Group Executive for Business & Private Banking, emphasized the significance of businesses to Australia's economy. "Business is the heartbeat of Australia’s economy and we know lower interest rates drive greater confidence right across the business community," he stated.
Saadie further noted that many business customers also have personal banking relationships with NAB. He expressed confidence that rate reductions across both business and home lending products would positively impact these customers.
As businesses navigate challenges such as global trade uncertainty and cashflow issues, NAB aims to support them through reduced interest rates. "While lower interest rates are welcome news, we know some business customers are facing tougher trading conditions which is why we have a range of support options available to those who need it," Saadie added.
Eligible business customers will notice their new interest rate on statements following May 30, 2025. This change aligns with NAB's recent decision to decrease the standard variable interest rate on home loan products by 0.25% per annum.
NAB offers its eligible business lending customers the option to either reduce their repayments or maintain current levels while lowering overall interest paid over time. The bank continues to review its interest rates for business deposit products regularly.