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A clear breakdown of UK Growth Guarantee Scheme interest rates, representative APRs, the BBB cap, the lender’s 2% scheme guarantee fee, arrangement fees and the realistic monthly cost of a GGS loan in 2026 — with worked examples by lender type.
Run a calculation →Each accredited GGS lender sets its own interest rate within the rules of the scheme. The British Business Bank caps the maximum effective rate the lender can charge, but otherwise leaves credit policy and pricing to the lender. In practice that means GGS interest rates vary widely depending on:
Indicative representative interest-rate ranges by lender type and product variant. Final pricing is determined by each lender’s underwriting on your specific case.
| Lender type | Product | Typical representative APR | Typical term |
|---|---|---|---|
| High-street bank | Term loan, secured | 7.5%–10.5% APR | 3–6 years |
| High-street bank | Term loan, unsecured | 9.0%–12.5% APR | 2–5 years |
| Challenger bank | Term loan, unsecured | 10.0%–14.0% APR | 2–5 years |
| Specialist non-bank | Term loan, unsecured | 12.0%–16.0% APR | 1–5 years |
| Asset finance lender | Hire purchase / finance lease | 8.5%–13.0% APR | 3–6 years |
| Invoice finance lender | Discount on invoice value | 1.5%–4.0% service+discount per advance | Revolving |
| RCF / overdraft | Bank base + margin | BBR + 4.0%–7.5% | Revolving (annual review) |
Ranges are indicative only and based on representative GGS lender pricing observed across our broker panel in early 2026. Final pricing is determined by each lender’s underwriting.
Aside from the headline interest rate, three other fee items typically apply to a Growth Guarantee Scheme loan:
A flat 2% of the facility amount, paid by the borrower. The lender collects this and remits to the British Business Bank as the cost of the 70% scheme guarantee.
Typically 1%–3% of the facility amount, often deducted at drawdown. Some specialist lenders are fee-free to attract enquiries; high-street banks more often charge a fee.
Usually paid by the lender as a commission, not the borrower — The Loans Hub does not charge a borrower-side fee for the standard GGS introduction. Any commission model is disclosed before you proceed.
Three worked monthly-repayment examples on representative 2026 GGS pricing — for indicative comparison only. Use our GGS calculator for a personalised figure.
| Scenario | Loan | Term | Indicative APR | Approx. monthly | Approx. total repayable |
|---|---|---|---|---|---|
| Established SME, high-street bank, secured | £150,000 | 5 years | 8.5% | £3,077 | £184,640 |
| Growth-stage SME, challenger bank, unsecured | £100,000 | 4 years | 11.5% | £2,613 | £125,400 |
| Newer trading, specialist non-bank, unsecured | £50,000 | 3 years | 14.5% | £1,720 | £61,920 |
Worked examples are indicative only, exclude the 2% scheme fee and any arrangement fee, and assume monthly capital-and-interest repayments at a fixed rate.
Indicative 2026 representative APRs range from around 7.5% on a secured high-street bank facility to around 16% on a specialist non-bank unsecured loan. Most term-loan GGS facilities price between 9% and 13% APR for a typical UK SME.
Yes — the British Business Bank caps the maximum representative APR a lender can charge under the scheme. The cap varies by product variant (term loan, asset finance, invoice finance, RCF) and is reviewed periodically. Most lenders price well within the cap.
A flat 2% of the facility amount, payable by the borrower to the lender at drawdown. The lender remits it to the British Business Bank as the cost of the 70% guarantee underpinning the scheme.
Both are available. Most GGS term loans are written at a fixed rate; revolving credit facilities and overdrafts are usually priced as Bank Base Rate + a margin (typically BBR + 4.0%–7.5%).
Yes — specialist non-bank GGS lenders have broader appetite for less-than-perfect director credit profiles, though pricing will be at the wider end of the scheme range. CCJs, defaults and historic IVAs need full disclosure.
For most UK SMEs, GGS pricing is materially better than the commercial alternative — particularly for unsecured term loans of £50k–£500k, where the 70% guarantee allows the lender to price 2–5 percentage points tighter than they otherwise would.
A two-minute soft-search enquiry returns indicative offers from across our accredited GGS panel — with the actual interest rate, scheme fee, arrangement fee and monthly cost set out for each.
Get an indicative GGS quoteEvery page below feeds the same panel of British Business Bank-accredited GGS lenders. Pick the deep-dive that matches your question, or jump to grants and alternative funding routes.
© 2026 The Loans Hub. All rights reserved.
