How CBILS interest works
The government paid the interest and lender fees on CBILS loans for the first 12 months. After that, the business pays interest at the rate in its loan agreement, which the lender set.
Interest is worked out each month on the balance you still owe, at one twelfth of the annual rate. Early payments are mostly interest; as the balance falls, more of each payment repays the loan.
Worked example
A £100,000 balance at 6% repaid over 6 years costs £19,324.79 in interest.
Paying less interest
Repaying early reduces the interest. Check your agreement for any early repayment terms.
Inputs for the CBILS loan interest calculator
Amount to borrow
Your CBILS loan amount or remaining balance.
Interest rate (per year)
The annual interest rate on your loan. The rate shown is only an example, so enter the rate from your quote.
Term
How many years you'll repay over. A longer term means paying interest for longer.
CALCULATOR QUESTIONS
CBILS loan interest calculator questions
Who paid the interest in the first year?
The government paid the interest and lender fees for the first 12 months.
Who set the CBILS interest rate?
The lender. It's in your loan agreement.
Why do I pay more interest at the start?
Interest is charged on the balance you owe, which is highest at the start. As you repay, it falls and so does the interest.
Can I still apply for CBILS?
No. The scheme closed to new applications in March 2021.