Small businesses are expected to save more than £100m as a result
From 1 August entrepreneurs in the UK will benefit from an average 1% decrease in interest rates, after a new lending scheme was announced by RBS and NatWest.
Provoked by the Bank of England’s Funding for Lending programme, which was announced in the March Budget, the move will see RBS and NatWest offer what they claim to be their best ever interest rates to small businesses.
Up to £2.5bn of small business loans will see interest rates fall by an average 1% and fixed rate loans will see a 1.6% reduction.
Furthermore, the arrangement fees on £2.5bn of new business loans will be removed – saving entrepreneurs an estimated £40m in fees.
The scheme will be strategically implemented across the country, to ensure all regional and local business communities benefit – with more than £100m expected to be saved over the life of the scheme.
RBS and NatWest Corporate CEO Chris Sullivan said his company is “determined to play their part in supporting the economic recovery.
“The clearest and strongest way we can do this is by letting people know that we are open for business and ready to support their ambitions on the best terms available.”