RBS slashes interest rates for small firms

Yesterday, UK banks RBS and NatWest announced that they will use the Bank of England’s ‘Funding for Lending’ scheme to enable them to offer an average 1% reduction in interest rates for SMEs.

The RBS Group has stated that they expect the new rates will save SMEs £4,000 on the average cost of a loan and will save around £100m over the life of the scheme. The scheme is due to be introduced from 1st August 2012.

The RBS Group also announced that there will be no arrangement fees on £2.5bn of new lending – saving SMEs a further £40m in fees.

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