Fixing the Interest Rate on your Coronavirus Business Interruption Loan
Support for businesses with an existing loan
You are only eligible to fix the interest rate on your Coronavirus Business Interruption Loan if you have been invited to do so. We will contact you if you are eligible, you do not need to contact us.
You can fix the interest rate on your loan
The interest rate on your Coronavirus Business Interruption Loan (CBIL) is currently linked to the Bank of England Bank Rate (Base Rate). This means that at the end of the Business Interruption Payment (BIP) period, you will begin to be charged interest as outlined in the email or letter we sent you.
If you are happy with your current Coronavirus Business Interruption Loan being linked to the Bank of England Base Rate on your existing terms, there is nothing you need to do.
Alternatively, as set out in your original CBIL application, you have the option to fix the interest rate on your loan at the first anniversary. You are only able to fix your total loan amount for the full remaining term of your loan.
Fixing your interest rate:
- Protects you against Base Rate interest rate increases
- Provides certainty of borrowing costs.
- There are no early repayment charges, meaning you can overpay your loan (partially or fully) without additional cost.
- You will not be able to benefit from any Base Rate reductions.
- You will not be able to change back to an interest rate linked to Base Rate once you have fixed your interest rate.
Important legal information
Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.
We adhere to The Standards of Lending Practice which are monitored and enforced by the LSB: www.lendingstandardsboard.org.
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.