Bounce Back Loan Repayment Calculator – How Much Does Your Loan Cost?
Bounce Back Loan Calculator
Use the SmallBusiness.co.uk Bounce Back Loan Calculator to find out how much your loan will cost in total.
How Much Will My Bounce Back Loan Cost?
The bounce-back loan program launched in May 2020 was launched to help small businesses affected by Covid-19. You can borrow between 2,000 and 25 percent of your company’s turnover (maximum available EUR 50,000).
The government covers all interest payable to the lender through a business interruption payment (GDP) in the first 12 months, while the 29 accredited lenders benefit from the 100 percent government-backed guarantee.
The interest rate on the loan is 2.5 percent per year and the repayment period is six years.
No repayments are due in the first 12 months.
However, you are obliged to repay the full loan amount as well as the interest after the first year:
Examples of Bounce Back Loan Repayment
|Loan amount||£ 5000||£ 10,000||£ 15,000||£ 20,000||£ 30,000||£ 40,000||£ 50,000|
|First monthly payment (in month 13)||£ 93.95 each||£ 187.9||£ 281.85||£ 375.8||£ 563.7||£ 751.6||£ 939.49|
|Total amount that is repayable over the life of the loan||£ 5443.18||£ 10886.32||£ 16329.5||£ 21772.71||£ 32658.98||£ 43545.27||£ 54431.6|
Keep in mind that as you repay the principal, your monthly repayments will decrease over time.
The total amount repayable over the life of the loan includes GDP.
What is the business interruption payment?
A Business Interruption Payment (BIP) is the amount the government pays to cover your interest in the first year.
Business Interruption Payment (BIP) calculator
|Business interruption payment (GDP)||£ 5000||£ 10,000||£ 15,000||£ 20,000||£ 30,000||£ 40,000||£ 50,000|
|£ 135.01||£ 249.99||£ 375||£ 500.05||£ 749.99||£ 1249.97||£ 939.49|
What is the Bounce Back Loan Fee?
There are no processing fees for setting up a bounce back loan.
There are no early repayment fees.
What if i am unwilling to pay interest?
You can now extend the period before you need to start repaying your bounce back loan for an additional six months. This means you have 18 months before starting the withdrawal. However, the interest is calculated from 12 months onwards, so you end up paying more interest.
Can I extend my bounce back loan beyond 6 years?
Yes you can. The loans were originally set up for a term of six years, but can now be extended to ten. The government says this could cut monthly repayments by almost half, but you’ll end up paying more than 2.5 percent interest.
The sooner you pay back your loan, once interest has been charged, which you can do with no penalty, the less it will cost you overall.