Barclays Bounce Back Loan Agreement: All You Need to Know

The COVID-19 pandemic has brought unprecedented challenges to businesses worldwide. To support small businesses and self-employed individuals during these tough times, the UK government launched the Bounce Back Loan Scheme (BBLS) in May 2020. The scheme provides businesses with access to finance up to £50,000, with no repayments due for the first 12 months. Many leading banks, including Barclays, are participating in the scheme. In this article, we`ll take a closer look at Barclays Bounce Back Loan Agreement and what it means for business owners.

What is the Barclays Bounce Back Loan Agreement?

The Barclays Bounce Back Loan Agreement is a legal contract that sets out the terms and conditions under which Barclays provides loans to businesses under the BBLS. The agreement applies to businesses that apply for a Bounce Back Loan through Barclays and have their application approved. The agreement covers various aspects of the loan, including repayment terms, interest rates, and fees.

How to Apply for a Barclays Bounce Back Loan?

To apply for a Barclays Bounce Back Loan, businesses must meet the following eligibility criteria:

– The business must be based in the UK.

– It must have been established on or before 1 March 2020.

– The business must not be in bankruptcy, liquidation, or already receiving support through another government-backed loan scheme.

– The business must be able to show that it has been impacted by the COVID-19 pandemic.

If your business meets these criteria, you can apply for a Bounce Back Loan from Barclays either online or over the phone. The application process is relatively simple and should take no longer than 30 minutes. You will need to provide basic information about your business, such as turnover, number of employees, and bank account details.

What Are the Terms of the Barclays Bounce Back Loan?

The Barclays Bounce Back Loan comes with the following terms and conditions:

– Loan amount: Businesses can apply for loans from £2,000 up to a maximum of £50,000.

– Repayment term: The loan has a repayment term of up to six years, but borrowers can repay it early without incurring any additional charges.

– Interest rate: The interest rate on the loan is fixed at 2.5% per annum for the entire loan term.

– No fees: There are no fees or charges for borrowers to pay under the scheme.

What Are the Repayment Options?

Under the Barclays Bounce Back Loan Agreement, borrowers have the following repayment options:

– No repayments for the first 12 months: Borrowers will not have to make any loan repayments for the first 12 months. The interest on the loan during this period will be paid by the government.

– Repayment holidays: After the initial 12-month period, borrowers can request a repayment holiday of up to six months if they are experiencing financial difficulties.

– Flexible repayments: Barclays allows borrowers to make additional payments or pay off the loan in full at any time without incurring additional charges.

Conclusion

The Barclays Bounce Back Loan Agreement provides a lifeline for small businesses and self-employed individuals affected by the COVID-19 pandemic. With no fees, a fixed interest rate of 2.5%, and repayment terms of up to six years, the loan provides a much-needed injection of cash to keep businesses afloat during these tough times. Apply today to take advantage of this fantastic opportunity to support your business through the coronavirus crisis.