Funding Circle has outlined its criteria and interest rates for the Recovery Loan Scheme (RLS).
The platform, which was accredited to the scheme in May, offers loans under the RLS from £25,001 to £350,000, with terms from two to six years and fixed interest rates starting at 8.6 per cent. These are capped at 12.1 per cent without any additional early repayment fees.
Funding Circle said that the specific rate borrowers receive will depend on a range of factors, such as credit history and the loan term, and if the platform is able to offer a loan on better terms without using the RLS it will do so.
The platform said in general interest rates will depend on the specific lender as well as borrowers’ own credit history, while rates cannot be more than 14.99 per cent per year.
To be eligible to apply for a Funding Circle RLS loan, the loan must be for business purposes, including growth and investment. The platform requires the business to have been impacted by the pandemic, to be currently trading in the UK, to have at least two years’ trading history and be a limited company or a limited liability partnership.
“Our interest is charged at fixed rates, which means you don’t have to worry about surprise interest rate changes,” Funding Circle said in a blog on its website.
“Plus, if you want to settle the loan early in full, we don’t charge any additional fees.
“We also don’t require a personal guarantee for recovery loans of up to £250,000.”