Fixed and Variable Rate Loans

Fixed Rate Loan terms

Rates can be fixed for 3, 5, 7, 10 and 15 years.

Loan repayment term up to 25 years.

The longer the fixed rate loan term, the smaller your monthly repayments, you’ll pay more back overall though.

Fixed rate of interest might end up costing you more than our Variable Rate, depending on what interest rates are in the future.

Your interest rate consists of a Fixed Core Rate and a Risk Margin.

Fixed Rate Loan fees

Any security fee will be charged in accordance with our Security Fee tariff/policy.

Variable Rate Loan terms

Repayment terms from 3 months up to 25 years.

Variable Rate Loan Interest

Your interest rate will be set above the Royal Bank base rate. Please note that, for the purposes of interest rate calculation, where Royal Bank base rate is below zero, it will be deemed to be zero.

Variable Rate Loan fees

Any security fee will be charged in accordance with our Security Fee tariff/policy.

Depending on the amount and term of your loan you can:

• Pay the capital and interest combined
• Pay the capital only (interest will be applied to the servicing account)
• Pay the interest only, and repay the capital at the end of the term.

Yes you can. When you take out a Fixed or Variable rate loan with us, you can make a full or partial repayment and you won’t be charged an early repayment fee.

Fixed Rate Loan

The biggest advantage is the stability of your monthly payments thanks to a fixed interest rate on the loan. It reduces your risk of being exposed to higher interest rates in the future, giving you a certainty in borrowing costs.

Another advantage is the range of repayment options we offer, meaning you can tailor the loan to best suit your business needs.

You can choose to pay the capital and interest combined, pay the capital only (interest will be applied to the servicing account) or pay the interest only, and repay the capital at the end of the term.

Variable Rate Loan

The main advantage of a Variable Rate Loan is that you can repay your loan early with no early repayment charge.

Also, if the Royal Bank base rate falls, the total amount you need to pay to fully repay your loan will decrease.

Another advantage is the range of repayment options we offer, meaning you can tailor the loan to best suit your business needs.

You can choose to pay the capital and interest combined, pay the capital only (interest will be applied to the servicing account) or pay the interest only, and repay the capital at the end of the term.

No, you are not required to open or maintain a business current account with us in order to obtain or manage a business loan.

In some circumstances you will be required to open a fee-free loan servicing account.

A fee-free Loan Servicing Account is not a Business Current Account. This account will purely be used to facilitate your loan and will be free of any transaction charges.

• You could take a repayment holiday at the start of the loan or during a Family First event.
• You could choose to have a capital repayment holiday of up to 6 months for a Family First event, you’ll still need to pay the interest, and switch back to a full repayment after that.
• During any Capital Repayment Holiday where you take a break from paying off the principle of the loan, the interest must still be paid into a servicing account.
• Interest will accrue during any repayment holiday, so it may take longer to repay the loan and cost more in the long run.
• Capital Repayment Holidays are subject to credit approval and payments may increase afterwards.

You are able to switch your Business Current Account to another provider while retaining your business loan with us.

We may require you to open a fee free loan servicing account and will confirm if this is required as part of the switching process.

A fee-free Loan Servicing Account is not a Business Current Account. This account will purely be used to facilitate your loan and will be free of any transaction charges.

You are able to use another provider to manage your business banking while retaining your business loan with us.