Bounce Again Mortgage reimbursement calculator
Bounce back loan calculator
Use the SmallBusiness.co.uk Bounce Back Loan calculator to work out how much your loan will cost in total.
How much will my Bounce Back Loan cost?
The Bounce Back Loan Scheme, launched in May 2020, was introduced to help small businesses affected by Covid-19. You can borrow anything between £ 2,000 up to 25 per cent of your business’s turnover (maximum amount available £ 50,000).
The Government covers any interest payable in the first 12 months through a Business Interruption Payment (BIP) to the lender, while the 29 accredited lenders benefit from the 100 per cent Government-backed guarantee.
The interest rate for the loan is fixed at 2.5 per cent per annum and the repayment term is six years.
No repayments are due during the first 12 months.
However, you are liable to repay the full loan amount, as well as interest, after year one:
Bounce back loan repayment examples
|Loan amount||£ 5000||£ 10,000||£ 15,000||£ 20,000||£ 30,000||£ 40,000||£ 50,000|
|First monthly payment (at month 13)||£ 93.95||£ 187.9||£ 281.85||£ 375.8||£ 563.7||£ 751.6||£ 939.49|
|Total amount repayable over the term of the loan||£ 5443.18||£ 10886.32||£ 16329.5||£ 21772.71||£ 32658.98||£ 43545.27||£ 54431.6|
Remember, your monthly repayments will reduce over time as you pay down the capital balance.
And the total amount repayable over the term of the loan includes the GDP.
What is the business Interruption Payment?
A Business Interruption Payment (BIP) is the amount of government pays in the first year to cover your interest.
Business Interruption Payment (BIP) calculator
|Business Interruption Payment (BIP)||£ 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 arrangement fees for setting up a bounce back loan.
Early repayment charges do not apply.
What if I’m not ready to start paying interest?
You can now extend the period before you need to start paying off your Bounce Back loan by another six months. This means you’ll have 18 months before you start paying it off. But interest is charged from 12 months, so you will end up paying more interest.
Can I extend my Bounce Back Loan beyond 6 years?
Yes, you can. Loans were originally set up to last for six years but now they can be extended to 10. The Government says this could cut monthly repayments by almost half, but you will end up paying more 2.5 per cent interest.
The sooner you pay off your loan once interest is charged, which you can do without a penalty charge, the less it will cost you overall.