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.

To make a repayment the easiest way to do this is via Online Banking, Bankline or the Mobile App. For business customers the limit for payments via Online Banking and the Mobile App per working day is £50,000.00.

If you wish to settle your loan early, please speak to your usual Bank contact. Please note there may be accrued interest to pay in addition to the outstanding capital balance. The loan cannot be redrawn once repaid.

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 your PAYG options won’t affect your credit score, or negatively affect your credit file. We may use your requests for Pay As You Grow options to help us assess affordability in any future lending applications, for example we will look at your incomings and outgoings, including the future repayments on your Bounce Back Loan, and also the total amount of all your borrowings, which will include the amount of your Bounce Back Loan.

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

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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 (PDF, 140KB) you made, please refer to your Bounce Back Loan application form.

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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.

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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.

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