Small Business Loans RBS Interest Rates

AndreNeto

Good afternoon everyone.

I am the manager at a small business - a design consultancy - and we have applied for the coronavirus support loan. RBS is currently charging 7,79‰ interest rate. We found it absolutely outrageous given that the Bank of England interest rates are now at 0,8‰. Has anyone else been facing this issue? Should the bank truly be taking advantage and profiteering of the current situation like this? Specially given the fact that this same bank was saved by taxpayers money not that long ago.

Looking forward to hearing from you all.
Thanks,
André

jonesMUFCforever

Base rates does not come into it when arriving at loan rates. It is based on risk.
8% is a good rate believe me.

[Deleted User]

Bank of England base rate is now 0.1% however lending rates rarely if ever track them, as above under 8% isn't a bad rate.

Thrugelmir

AndreNeto said:

 Specially given the fact that this same bank was saved by taxpayers money not that long ago.

The taxpayers are still waiting to get their money back. Not lose more. Which could potentially happen. 

John_

AndreNeto said:

Good afternoon everyone.

I am the manager at a small business - a design consultancy - and we have applied for the coronavirus support loan. RBS is currently charging 7,79‰ interest rate. We found it absolutely outrageous given that the Bank of England interest rates are now at 0,8‰. Has anyone else been facing this issue? Should the bank truly be taking advantage and profiteering of the current situation like this? Specially given the fact that this same bank was saved by taxpayers money not that long ago.

Looking forward to hearing from you all.
Thanks,
André

Why would you compare it to the base rate? This rate sounds pretty reasonable really, given the probability of default of companies like yours.

How are you working out what the right rate is?