Base Rate Loan

Our Base Rate Loan is a flexible finance option that can be tailored to suit your short or long-term financial goals. It is linked to the Bank of England bank rate so the interest rate that you pay will change as the bank rate changes.

Loans up to £25,000

Borrow from £1,000 over 1 to 25 years.  Choose between fixed or variable interest rates to suit your business needs

Get a quote

Loans above £25,000

If your business turnover is between £0-3m please call

0345 072 5555

If your business turnover is between £3-25m please call
0800 022 4378

Key features and benefits

  • Interest rate varies with Bank of England Bank Rate
  • Borrow from as little as £1,000
  • Choose a term up to 25 years
  • No early repayment costs1
  • Capital repayment holidays of up to two years may be available2
  • Loans available on a secured or unsecured basis
  • Different repayment profiles may be available, such as interest only
  • 5.1% APR1 (variable) representative*

Is my business eligible?

To enquire about this loan, you must:

  • Require the loan for business use.
  • Apply for a minimum of £1,000
  • Be a sole trader, partner or director with authority to borrow on behalf of your business.
  • Be aged 18 or over.

Representative example

At least 51% of successful applications will receive the representative rate of 5.1% APR (variable):

A fixed annual purchase rate of 5.1% APR

And a fixed annual interest rate of 5.0%

Based on borrowing £8,000

Over 60 months, with monthly repayments of £150.97

Total amount payable £9,058.20

Credit limits and interest rates vary depending on your individual circumstances.

What do these numbers mean?

Can I borrow for my business?

See how likely you are to get a Business Loan of up to £25,000. View indicative interest rates and repayment details. Try different options without affecting your credit rating.

Get a quotefor a fixed rate business loan
  • For loans above £25,000, an arrangement fee will apply and is related to the amount you choose to borrow. These terms will be discussed with you before you take out the loan.

    Amount of borrowing Arrangement fee
    Up to £25,000  £0
    £25,001-£1m 1.5%



    This excludes Property Development Base Rate Loans where you will pay an arrangement fee of up to 2% on the amount of your loan.

    *If you choose to repay early there will be no break costs associated with the loan. There may be an administration fee to repay early. These terms will be discussed with you before you take out the loan.

Helpful guides

Whether it’s for growth or development, there are many reasons why your business may need finance. We could provide help when you most need it.

Anwyl Homes

Find out how we supported Anwyl Homes boost its turnover by 49%

Anwyl Homes case study

Making sure you get a fair deal

We want you to find a product that's right for your circumstances, which is why we adhere to the Standards of Lending Practice, which are monitored and enforced by the Lending Standards Board

To find out more you can read the statement of responsibilities, which details what's expected of us, the lender and you the borrower.

Download the statement of responsibility (PDF)

Lending appeals

The right type of funding can play a vital role in helping your business reach its potential. If your lending application is declined, we will work with UK Finance to pursue any raised appeals.

Appeals for borrowing. Business finance declined? You can ask for the decision to be reviewed

ANY PROPERTY GIVEN AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBTS SECURED ON IT.

Get a quote for a Base Rate Loan

Borrow from £1,000 over 1 to 25 years.  Choose between fixed or variable interest rates to suit your business needs.

Get a quote

Other loan options

Explore other products within Loans and Finance:

Our specialists can support you

If your business turnover is between £0-3m please call
0345 072 5555

If your business turnover is between £3-25m please call
0800 022 4378

What do these numbers mean?

Representative example: 5.1% APR based on an assumed unsecured loan amount of £8,000 with 60 monthly repayments of £150.97 at an annual interest rate of 5.0% (variable). Total amount payable £9,058.20

*The representative APR is an illustration of the rate that the majority of customers will receive. If a loan is described as having a particular representative APR, then we expect to offer that rate or better to at least 51% of the applicants we accept. Other customers may get a different rate based on their individual circumstances.

Our representative APR applies to all unsecured loans with a borrowing amount of up to £25,000 for businesses with a turnover of up to £25 million. This figure is not necessarily the rate you will be receiving and is for illustrative purposes only.

Our Base Rate Loan is a flexible finance option that can be tailored to suit your short or long-term financial goals. It is linked to the Bank of England bank rate so the interest rate that you pay will change as the bank rate changes, resulting in your monthly repayments increasing or decreasing.

For loans above £25,000 an arrangement fee will apply and is related to the amount you choose to borrow. These terms will be discussed with you before you take out the loan.

1Annual Percentage Rate (APR) is the total cost of the credit expressed as an annual percentage of the total amount of credit. It represents the actual yearly cost of credit over the loan term and includes not only the interest but also any other charges you have to pay, for example, an arrangement fee. The APR will vary depending on the loan amount and term.

Important Legal Information

All lending is subject to a satisfactory credit assessment and we will need your permission to carry out a credit check on you and your business.

You should not apply for an amount that you cannot comfortably afford to repay now and in the future to avoid the possibility of legal action.

1If you choose to repay early there will be no break costs associated with the loan. There may be an administration fee to repay early. These terms will be discussed with you before you take out the loan.

2 Capital repayment holidays available in certain circumstances only

Lloyds Bank is a trading name of Lloyds Bank plc, Bank of Scotland plc and Lloyds Bank Corporate Markets plc. Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no.2065. Bank of Scotland plc. Registered Office: The Mound, Edinburgh EH1 1YZ. Registered in Scotland no. SC327000. Lloyds Bank Corporate Markets plc. Registered office 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 10399850. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278, 169628 and 763256 respectively.

The products and services outlined on this site may be offered by legal entities from across Lloyds Banking Group, including Lloyds Bank plc and Lloyds Bank Corporate Markets plc. Lloyds Bank plc and Lloyds Bank Corporate Markets plc are separate legal entities within the Lloyds Banking Group.

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