Interest rates and terms on charity funding and loans

Interest rates

The interest rate on borrowing from our charity funds depends on the size, type and length of loan required, but typically varies between 5.5% and 7.5%.

Importantly, our interest rates are not linked to Bank of England base rates and are therefore more stable and predictable than ‘variable rate loans’ available from the high street. This means that it will be much easier for you to understand the costs of taking a loan into the future and to ensure the sustainability of your project.

Whilst not technically fixed, we have not yet increased the rate of interest for any borrower and have no plans to do so.

Loan terms – tailored to your needs

Typical loans from the Charity Bank range from £50,000 up to £2m, with larger deals arranged in partnership with other lenders.

These can be unsecured loans for terms of up to 5 years, or where security is available we can lend up to 25 years.

Early repayments are permitted at no charge, unless you choose to refinance with another bank in the first two years.

We do not require organisations to fit into the requirements of a loan product, but instead we tailor our offering to meet the needs of your organisation, that is our charitable mission.