UK business interest rates: loans
UK business interest rates: loans stood at 5.84% in Aug 2026, according to Bank of England. It is one of the indicators in the Savings and loan rates table (Value · Monthly), with a complete series running from Jan 1999 to Aug 2026. The complete series with an interactive chart, free to download.
This indicator in the Savings and loan rates table
| Indicator | 08-2026 | 07-2026 | 06-2026 | 05-2026 | 04-2026 | 03-2026 | 02-2026 | 01-2026 | 12-2025 | 11-2025 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Businesses | |||||||||||
| Businesses: loans, outstanding | 5.84 | 5.82 | 5.79 | 5.76 | 5.78 | 5.8 | 5.77 | 5.8 | 5.86 | 5.91 | |
| Businesses: loans, new business | 5.57 | 5.62 | 5.42 | 5.35 | 5.52 | 5.52 | 5.66 | 5.71 | 5.64 | 5.64 |
Understanding UK business interest rates: loans
Average percentage interest charges levied by monetary financial institutions across the United Kingdom on existing resident business lending balances measure the effective cost of corporate debt across all outstanding loans and overdrafts. This stock metric aggregates all active business credit, encompassing variable-rate facilities and older fixed-term commercial loans. Business loans differ from household lending through larger average facility sizes, bespoke contractual terms, and sensitivity to corporate risk assessments, which collectively influence the structure of effective lending rates.
When analysing this monthly indicator, observers must account for the slow transmission of monetary policy as legacy fixed-rate corporate loans gradually mature and refinance. Comparing this outstanding series with new business lending rates highlights the spread between historical borrowing costs and current market pricing. Revisions to provisional estimates occur periodically as banks update loan portfolio data. Seasonal fluctuations are generally minimal, but quarterly corporate reporting cycles can affect borrowing volumes, though the reported interest rate reflects the blended average pricing of the total outstanding debt stock.
Frequently asked questions
- What types of corporate credit are included in this business loan measure?
- The series covers commercial loans, overdrafts, and revolving credit facilities extended to resident businesses by monetary financial institutions.
- Why does this outstanding lending rate adjust slowly to interest rate changes?
- Many businesses hold fixed-rate commercial loans agreed in past periods, insulating their existing debt servicing costs temporarily from recent policy shifts.
- How does business lending differ from household secured lending in this table?
- Business lending serves commercial operations and investment needs with bespoke terms, whereas household secured loans primarily finance residential property.