How much does a Start Up Loan cost?

In this guide, we’ll break down the total cost of a Start Up Loan, including interest rates, repayment terms, and additional support you receive.

A Start Up Loan is a government-backed personal loan designed to help individuals launch or expand a business in the UK. Unlike traditional business loans, it is unsecured, meaning no assets or guarantors are required to apply.

Additionally, all successful applicants receive 12 months of free mentoring and exclusive business support, making this funding option more than just financial aid.

• Minimum loan amount: £500
• Maximum loan amount per individual: £25,000
• Maximum loan per business: £100,000 (if multiple owners apply)
• Average loan amount: £9,295

Each owner or partner in the business can apply for funding separately, meaning a business with multiple partners can collectively secure a higher total amount.

Need to borrow more? Talk to us about a Small Business Loan.

The Start Up Loan comes with a fixed interest rate of 6% per annum. Since the rate is fixed, your repayments remain the same throughout the term, making it easier to budget.

For example, if you borrow £12,000 over five years (60 payments), you will repay:

• Monthly repayment: £231.99
• Total repayment over five years: £13,919.62
• Total interest paid: £1,919.62

This stability helps business owners plan ahead without worrying about fluctuating interest rates.

Start Up Loans offer flexible repayment terms to suit different financial situations:

• Minimum term: 1 year
• Maximum term: 5 years
• Early repayment: No penalties for repaying early

One of the biggest benefits of the Start Up Loan scheme is the lack of hidden fees:

✅ No application fees
✅ No set-up fees
✅ No early repayment charges

This makes it one of the most affordable ways to access funding for new businesses in the UK.

Unlike many business loans, Start Up Loans come with valuable non-financial support, including:

• 12 months of free mentoring to help guide your business decisions
• Exclusive business offers to help with essential services
• Free templates & guides to streamline business planning and operations

This extra support can make a significant difference in the early stages of running a business.

If you need affordable funding with expert support, a Start Up Loan could be an ideal choice.

Before applying, consider:

• Can your business afford the repayments? Fixed monthly costs help with budgeting.
• How much do you need? Borrowing only what’s necessary can reduce overall costs.
• Are you prepared for the application process? You’ll need a business plan and financial forecasts.

Ready to take the next step? Secure your Start Up Loan today and get access to funding, expert mentoring, and business growth resources.

Apply now or speak to us.