Understanding your Bounce Back Loan | Ulster Bank

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Understanding your Bounce Back Loan


If you’ve received lending under the Bounce Back Loan scheme, including any Top-Up amount, find out more about your commitments and what you can do to prepare for when your repayments begin.

About Bounce Back Loans

  • The Bounce Back Loan scheme is a government initiative to support small and medium-sized businesses struggling with the impact of coronavirus
  • The government provides lenders like NatWest with a guarantee for 100% of the loan, should the borrower default
  • You will have to repay this loan in full including interest
  • For the full details of your specific loan and commitments, refer to the loan agreement you signed before receiving your loan
  • If you've borrowed less than 25% of the annual turnover on your original Bounce Back Loan application, you could apply for a top-up from £1,000 subject to an overall cap of £50,000. Eligibility criteria applies. More about Top-Up

Your Bounce Back Loan term

There are currently no changes to the 6 year term of your loan. Any Top-Up amount will expire on the same date as your original Bounce Back Loan.

The government recently announced changes that may allow applications to extend the term to 10 years.

We’re working with the British Business Bank to confirm how this will work. We’ll provide more details when they are available, there’s no need to get in touch at present.

Bounce Back Loan interest rate

  • Interest on your Bounce Back Loan, including any Top-Up amount, is fixed at 2.5% per year
  • Interest is calculated and accrued daily
  • Interest during the first 12 months will be paid by the government. Remember that you are responsible for paying back the whole loan, including any interest accrued after the first 12 month period

Your Bounce Back Loan repayments

12 month repayment holiday

  • Upon drawdown, we applied an automatic 12 month repayment holiday, including any top up amount
  • Your repayments are due to start 1 month after the repayment holiday ends

Making your payments

  • You can make extra repayments or repay the loan early without penalty
  • Under your agreement, you must repay the loan and interest in full by the final repayment date

Your repayment account

  • If you have a current account with us, we’ll take payments due from this account
  • You’ll need to monitor the balance of this account to avoid going overdrawn or exceeding any limit

Bounce Back Loan repayment holiday updates

The government announced new payment holiday provisions for Bounce Back Loans, including any Top-Up amount.

  • Switch to temporary interest-only payment up to 3 times, each lasting 6 months
  • Take a single payment holiday, pausing all repayments for 6 months, providing at least 6 loan payments have been made
  • You'll continue to accrue interest and may end up paying more over the term of your loan

We’re working with the British Business Bank to confirm how this will work. We’ll provide more details when they are available, there’s no need to get in touch at present.

Preparing for your repayments to begin

Support if you're struggling financially

Where you have had a direct financial impact caused by the coronavirus, there may be support available to you. 

For more information about the government support available and how to access it, visit our government schemes page. 

More questions about Bounce Back Loans?

Visit our Frequently Asked Questions to find further guidance and support

Get the right support during coronavirus

We understand these are difficult times, and if you're in need of a helping hand we're here to support you.

Find guidance and support on our coronavirus hub.

Visit the coronavirus hub

Managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy.

British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA.

Visit british-business-bank.co.uk.

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