Capped Base Rate Loan

Our Capped Base Rate Loan provides certainty of a known maximum monthly payment, whilst benefiting from a variable rate.

It is linked to the Bank of England Bank Rate so the interest rate that you pay will change as the Bank Rate changes, but it will not go above the Capped Rate during the Capped Rate Period.  Capped Base Rate loans are less dependent on market conditions than Base Rate Loans, giving you confidence that you will be able to meet your financial obligations.

Features and benefits

  • Borrow from £50,001.
  • Choose a term from 5 to 25 years1.
  • Variable monthly repayments, Capped during the 5 year Capped Rate Period1.
  • Benefit from capital repayment holidays, available in certain circumstances.
  • Borrow on a secured or unsecured basis.

There is always a possibility that the total interest rate payable will not rise above the Capped Rate during the Capped Rate Period, in which case you may have unnecessarily paid more interest than if you had chosen a Base Rate loan with no Capped Rate feature.

Any early payment made during the Capped Rate Period will incur a Break Cost. Break Costs are defined at the outset of your loan, giving you certainty around the costs involved.

An arrangement fee of up to 1.5%2 applies and is related to the amount you borrow.

  • To enquire about this loan, you must:

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

    One of our relationship managers will be happy to speak with you about your enquiry. However, before you get in touch, please make sure you know:

    • How much you would like to borrow.
    • The purpose of the finance.
    • What time period you would like to make the repayments over.
  • Base Rate Business Loan

    A loan with a variable rate that changes in line with the Bank of England bank rate.

    Commercial Fixed Rate Loan

    Repay a consistent monthly amount for the entire length of your loan term.

    Invoice Finance

    Strengthen your cash flow using our Invoice Finance products and release up to 90% of the cash tied up in your outstanding invoices, usually within 24 hours.

    Loans and finance

    Our lending products are flexible enough to accommodate almost any business plan.

How to enquire

On the phone

0800 022 4378

Call us to talk to one of our relationship managers. We are available from 9am to 5pm Monday to Friday.

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.


Overdrafts are repayable on demand.

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.

1The “Capped Rate” applies for a Capped Rate Period of five (5) years, and this may be equal to or less than the full term of the loan.  If the term of the loan is for longer than the Capped Rate Period, then from the end of the Capped Rate Period, the loan will no longer have the protection of the Capped Rate and will be subject to the full impact of any movement in the Bank Rate with no maximum interest rate protection.

2An 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. To cover our administration costs for smaller facilities, there will be a minimum scale charge of between £100 and £250 resulting in the overall charge being more than 1.5%.

Important Legal Information

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.

Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS). Please note that due to FSCS and FOS eligibility criteria not all business customers will be covered.

Calls may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help improve our quality of service.

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.