Yes, a Start Up Loan is a personal loan for business purposes. It's unsecured, so you don't need to offer any security or find a guarantor. Because it's in your own name, you're personally responsible for repaying it.
What "personal loan for business purposes" means
- The loan is in your name, not the business's. That applies even if your business is a limited company.
- It's paid into your personal bank account. You can't receive it into a business account.
- It's a regulated consumer loan. It's covered by the Consumer Credit Act, with the protections that brings.
- You use the money for the business, on the costs set out in your plan.
No security, no guarantor
- There's no charge over your home or other assets.
- Nobody else has to guarantee the loan.
- Because it's a personal loan, there's no business guarantee to sign either.
What you're taking on
- You repay it even if the business stops trading. Closing the business doesn't cancel the loan.
- It appears on your personal credit file, along with how you repay it.
- Missed payments affect your own credit record, not just the business's.
It isn't a grant
The money has to be paid back, with interest, over the term you choose (one to five years). See our guides, Start Up Loan or a grant? and Start Up Loan vs business loan.
Last reviewed: 8 October 2026