Repaying your Bounce Back Loan

Information for businesses able to pay back some or all of their loan. 

Making repayments

For the first 12 months of your Bounce Back Loan, you are not required to make any capital repayments and the UK Government’s Business Interruption Payment covers your interest.

You will need to make monthly capital repayments, plus interest, 13 months after we paid you your Bounce Back Loan.

Continue with your current repayment arrangement

  • We will automatically start taking repayments 13 months after you received your loan. If you’re happy with your repayment arrangement, there’s nothing you need to do. 
  • Your monthly repayments will start as set out in your loan agreement, at a fixed 2.5% annual interest rate.
  • We calculate interest daily on the amount you owe, and you’ll pay this monthly at the same time as your capital repayment. As you repay the balance over time, you will pay less interest each month.
  • Monthly repayments will have an effect on your business’s cashflow as your expenses will increase.

Make an additional payment or pay off your loan early

  • If you no longer need the loan, you can choose to pay it back early. 
  • If you pay the full amount before the 12-month anniversary of when you first took out your loan, you won’t pay any interest. If you repay the loan in full at any other time, we’ll clear the outstanding balance straight away, but we’ll collect your final interest payment on the next repayment date. 
  • You can make partial repayments, and additional repayments on a regular basis. 
  • There are no early repayment charges for making additional payments or for paying off your loan early. 
  • There is no minimum repayment amount when making additional overpayments on your Bounce Back Loan.
  • If you have other borrowings, you may want to think about repaying them before making additional payments to your Bounce Back Loan. 

Support with repaying your loan – Pay As You Grow

If you’re worried about making your loan repayments, the Pay As You Grow scheme gives you more time and flexibility to pay back your Bounce Back Loan. 

  • You can choose to use one or more of the Pay As You Grow options during the term of your loan. These include extending the loan term or taking a repayment holiday.
  • If you decide to use any of the options, the overall cost of your loan will increase.
  • Using Pay As You Grow options won't affect your credit score, though it may influence how we assess your creditworthiness in the future.
More about Pay As You Grow

The Bounce Back Loan Scheme is not subject to the usual consumer protections that apply to business lending, and as such will not have the benefit of the protection and remedies that would otherwise be available under the Financial Services and Markets Act 2000 or the Consumer Credit Act 1974.

The Bounce Back Loan Scheme is 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.