Bounce Back Loan
If you received financial support by means of a bounce-back loan, there are now options allowing you to avail of greater flexibility when it comes to repaying this loan.
Due to the chancellors Pay as You Grow repayment flexibilities, more financial support is now available to borrowers. Support available includes;
- Reduce monthly repayment amounts by requesting an extension of your loan term to 10 years from 6 years, at the same fixed interest rate of 2.5%. Please note that this option must be agreed with the lender before your monthly repayments commence.
- Reduce your monthly repayments for six months by paying interest only. This option is available up to three times and can be exercised at any point during the term of your Bounce Back Loan.
- Take a repayment holiday for up to six months. This option is available once during the term of your Bounce Back Loan and it can be used to delay all repayments for a further six months meaning that you can choose to pay nothing until 18 months after you first received the loan.
Borrowers can use these options individually or in combination with each other.
Borrowers should be aware that you will pay more interest overall if you use one or more of these options, and that the length of the loan will increase in line with any repayment holidays taken.
These flexibilities are in addition to the government covering the cost of interest incurred for the first year of the loan.
To find out more, please click here.
