Start Up Loans have a fixed interest rate of 7.5% a year (AIR), which is a 7.8% representative APR. The rate is fixed for the whole life of the loan, so your monthly repayment never changes.
Representative example
£10,000 over 60 months at 7.8% APR — monthly payments £200.45, total interest £2,027, total repayment £12,027.
What "fixed" means for you
- Your repayment is the same every month from the first payment to the last.
- Changes to the Bank of England base rate don't affect your loan.
- There are no arrangement fees, and no penalty for paying the loan off early.
The term changes the total cost
You choose a term of between one and five years. A longer term means lower monthly repayments but more interest overall. A shorter term costs less in total but needs bigger monthly payments. Your advisor will help you pick a term your budget can carry. See Start Up Loan term: how long does it last?
Older loans at 6%
Before 6 April 2026 the rate was 6%. Loans already agreed at 6% keep that rate for their whole term. New applications are at 7.5%.
Last reviewed: 8 October 2026