Small Loans for Business provides loans to individuals, to support good business ideas that could be difficult to fund through other means. Loans of £3,000 - £20,000 can be used to turn ideas into a new business or grow an existing business if they can raise/contribute a minimum 30% of the value of the loan.
Loans can be used to:
Secure services
Purchase equipment
Meet a shortfall in funding for specific new projects, not existing running costs...
Repayments are made over a period of between one and five years. Interest will be charged at 10.25% for the period of the loan. Loans are discretionary and should not be seen as guaranteed.
The loan is unsecured and would compare as follows with other lenders:
|
|
Int. Rate |
Amount |
Period |
Monthly Repayments |
Total Int. |
Fees |
Total Repaid |
Early Repayment Penalties |
|
Typical High street Bank |
15.6% |
16000 |
5 Yrs |
£377.02 |
£6421.02 |
£200 |
£22621.02 |
Yes- Not quantified |
|
Small Loans For Business |
10.25 |
16000 |
5 Yrs |
£341.92 |
£4515.45 |
0 |
£20515.45 |
None |
To qualify for Small Loans for Business the basic criteria is: (for full requirements see application form)
How to apply
By calling to request an application form or by downloading a form from the Internet.
www.emda.org.uk/smallloans or telephone 0845 602 7355
