funding for lending

RBS Cuts Interest Rates for Small Business

The Royal Bank of Scotland (RBS) has announced that it is using the Bank of England’s Funding for Lending Scheme (FLS) to reduce interest rates for small businesses. The £140 million Funding for Lending, Bank of England and Treasury backed, scheme offers money to the high street banks at a lower rate of interest that can then be passed on to business customers. RBS has said it will cut borrowing costs by 1% on average and by up to 1.6% for some of the smallest businesses. In addition, the bank will be removing arrangement fees on £2.5 billion of new loans to small firms. Looking at an average £100,000 business loan, the saving will be around £4,000 – made up of a £1,500 arrangement fee and £2,500 in interest. This could amount to an estimated... »