If you're struggling to repay your Bounce Back Loan then there are a number of repayment options under the Pay As You Grow scheme. These are designed to help businesses have more time and flexibility in paying back their Bounce Back Loans. These options will be available to apply for before your 12 month repayment holiday finishes.
The following options will be available to all Bounce Back Loan borrowers:
- Extending your loan term from 6 years to 10 years - by choosing to repay your loan over 10 years rather than 6 years your monthly repayments will be lower, but you will pay more interest over the lifetime of your loan.
- Interest-only payments for six months - you can choose to pay only interest on your loan each month for a period of six months. You can select to do this up to three times (a total of 18 months). This will increase the total amount of interest you have to pay over the lifetime of your loan.
- Payment holiday for six months - your company can choose to have a holiday from payments for six months. This option can only be used once during the lifetime of the loan and will increase the total amount of interest you have to pay over the lifetime of your loan.
Businesses can select to use only one PAYG option or a combination of the options available. We'll be in touch with you to let you know when your PAYG options are available. You do not need to contact us about PAYG in advance of this.