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Can my business pay back a loan early?

You can repay your CBILS loan in full at any time after the first four months, with no repayment fee. If you repay your CBILS loan after the first 12 months, you must pay the interest due until the next repayment date. Please note, under clause 4.1 of the CBILS Loan Conditions, if a CBILS loan is repaid fewer than eight days before the next scheduled repayment date, you will need to pay interest up to the subsequent scheduled repayment date (and so will incur a further month’s interest).

Please also note the loan amortises over the course of the loan, as demonstrated in the example below:

For example if you took out a CBILS £55,000 loan for 36 months with an interest rate of 6% the total you would have to repay over that 36 month period would be £58,503. If after 12 months you wanted to repay the loan you would only pay back £55,000 (as you don't pay any interest for the first 12 months),  saving you £3,503. If after 24 months you wanted to repay the loan you would pay back only £57,574 saving you £929.

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