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Loans

Caring about local, rural and entrepreneurial businesses

Helping you embrace opportunities with confidence

  • Borrow £50,000 to £5m or more
  • Interest-only payable monthly
  • Decisions within 24-48 hours*
  • Funds from 7 -10 days of approved application*
  • Fixed or flexible loans from 6 months - 5 years
    *If you have all the relevant documents ready, and there are no complications.
    Your property against which the loan is secured could be at risk if you don’t meet payments
    Terms and Conditions

You can use the loan for…

Working capital
Grow your team, hire more staff
Buy essential equipment
Funds for refurbishment/
property development
Start-up loans
Diversify your business

Simple and straightforward application

Folk2Folk Apply Online
Apply online, call us
or drop into a branch
Folk2Folk - Loan Decision
Decision within 24-48 hours*
Folk2Folk - Funds released in 7-10 days
Funds released in 7-10 days*

*If you have all the relevant documents ready, and there are no complications.

Rolling loan

Loan term

Min term 6 months –
rolling up to 5 years maximum

Interest Rate

6.5% p.a. - Max LTV 60%
(Forced sale value)

Fees

  • 2.5% Initial arrangement fee
  • 1.5% Annual arrangement fee
  • Legal costs and disbursements

Loan extension

Not applicable
 
 
 

Loan redemption 

  • Notice period 3 months
  • Redemption admin charge of £250 +VAT (legal charge)
  • No early or partial repayment admin charge

Partial draw-down

Available

Example loan purposes

  • Property development
  • Working capital

Fixed  1 or 2

Loan term

1 or 2 years
Review at end of loan term

Interest Rate

5.5% p.a. - Max LTV 50%
6.5% p.a. - Max LTV 60%
(Forced sale value)

Fees

  • 2% Initial arrangement fee
  • 1% Annual arrangement fee
  • Legal costs and disbursements

Loan extension

  • Yes ‡
  • 1% renewal fee + legal costs
  • Maximum combined loan duration 5 years

Loan redemption 

  • Notice period 3 months
  • Redemption admin charge of £250 +VAT (legal charge)
  • Plus additional 3 months' interest payable to investors
  • Early or Partial Repayments Admin Charge (if applicable) of £250 +VAT

Partial draw-down

Not available

Example loan purposes

  • Agriculture/diversity
  • Leisure & tourism
  • Property development
  • Renewables
  • Working capital

Fixed 3, 4 or 5

Loan term

3, 4 or 5 years
Review at end of loan term

Interest Rate

6.5% p.a. - Max LTV 60%
(Forced sale value)

Fees

  • 1.5% Arrangement fee
  • 1% Annual arrangement fee
  • Legal costs and disbursements

Loan extension

  • Yes ‡
  • 1% renewal fee + legal costs
  • Max combined loan duration 5 years

Loan redemption 

  • Notice period 3 months
  • Redemption Admin Charge of £250 +VAT (legal charge)
  • Plus additional 3 months' interest payable to investors
  • Early or Partial Repayments Admin Charge (if applicable) of £250 +VAT

Partial draw-down

Not available

Example loan purposes

  • Agriculture/diversity
  • Leisure & tourism
  • Renewables
  • Working capital

subject to availability and review

Full details can be found in our Loan product booklet and Terms & Conditions

 

Are you eligible?

  • Have land or property, other than their home, against which to secure the loan (we lend up to a maximum 60% of the forced sale value of the security)
  • You are looking to borrow £50,000 or more
  • Be based in the UK (excluding Isle of Man and Channel Isles)
  • Be over 18
  • Pass our credit and reputational checks

Latest News

Customer Stories

  • Richard's Story - Borrower

    "Sharp & Tappin is a precision engineering company and has been going for 11 years. The business has two parts: one is onboard cameras for ships and the other is composite blade saws...
  • Jim’s Story - Lender

    "I started my working life as a pilot in the Royal Air Force and after a 10 year commission I went to work in a building society which had a business arrangement with Parnalls solicitors who...
  • Pam's Story - Borrower

    "In 2009, I, together with my husband Robert and daughter Robyn, bought a pub which I had previously owned with my husband and sister in law and brother in law and sold in 2001. Since then it...
  • Nick's Story - Borrower

    Originally I was a farmer, but after Foot and Mouth affected us we had to diversify and Folk2Folk have enabled me to do this.  

    I have borrowed money through Folk2Folk since they began and...
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