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Understanding your Bounce Back Loan

If you’ve received lending under the Bounce Back Loan scheme, including any Top-Up amount, find out more about your commitments and what you can do to prepare for when your repayments begin.

Preparing for your repayments

You received a payment holiday for the first year of your loan, with the interest being paid for by the government via a Business Interruption Payment

After the first 12 months, you’ll need to start making monthly repayments to repay the amount you borrowed, plus interest from the date your repayment holiday ends

 We’ll send you a repayment schedule outlining your options, around three months before your first payment is due.

You don’t need to contact us in advance

I want to pay back my loan now

If you no longer need the loan, you can choose to pay it back early. You’ll then pay less interest. There are no early repayment charges and you won’t pay any interest if you pay the full amount before the end of your initial 12 month repayment holiday.

Or, you can make a one-off repayment, as well as additional payments on a regular basis, and doing so will also help save you money on your interest payments.

I need more time or can’t afford the repayments yet

The government has announced Pay As You Grow options for Bounce Back Loan borrowers to help businesses get back to regular trading. Pay As You Grow could give you more time and flexibility to pay back your loan.

Pay As You Grow options will be available to you once you start to repay your Bounce Back Loan, from 12 months after it was first drawn down.

Using these options won’t affect your credit score, though it may influence how we assess your creditworthiness in the future and your loan may cost you more overall. Any missed payments and continued arrears will also impact your credit score.

More questions about Bounce back loan?

Visit our Frequently Asked Questions to find further guidance and support

Bounce Back Loan interest rate

Interest on your Bounce Back Loan, including any Top-Up amount, is fixed at 2.5% per year

Interest is calculated and accrued daily

Interest during the first 12 months will be paid by the government. Remember that you are responsible for paying back the whole loan, including any interest accrued after the first 12 month period

Your Bounce Back Loan term

There are currently no changes to the 6 year term of your loan. Any Top-Up amount will expire on the same date as your original Bounce Back Loan.

For the full set of declarations you made, please refer to your Bounce Back Loan application form.

Need to get in touch?

Cora, your digital assistant can quickly help with many of your questions. Cora has already assisted hundreds of customers with government loan scheme queries. If Cora can't help, she'll put you in touch with a specialist.

Customers with hearing and speech impairments can contact us by using our Relay UK Service: 18001 0345 711 4477

For more information visit the accessibility page

Calls may be recorded for training and monitoring purposes. To see how much your call might cost, visit the call charge information page

Managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy.

British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA.

Visit british-business-bank.co.uk

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