You will have 5 years (60 months) to pay off the loan. We will send you a payment schedule with the payment dates and amounts when regular payments are required to be made. Loans will be subject to an annual interest rate of 3% from the first day of the third year of the loan.
During the loan period, the following general rules apply.
- If you repay your loan in full within the first 2 years you will not be charged any interest.
- Repayments are not compulsory in the first 24 months.
- Voluntary payments can still be made at any time.
- After 24 months, you'll be required to make regular payments for both the principal and interest.
First 2 years interest-free
From 21 March 2022 the first 2 years of the loan will be interest-free. This change will apply to existing borrowers, provided there has not been any event of default on your SBCS loan. For all new borrowers, this change will automatically apply from 21 March 2022. If you choose to draw down the loan in up to 4 separate amounts (up to the maximum loan amount), the 2-year interest-free period begins from the date of your first drawdown.
Loans have an annual interest rate of 3% which will apply from the first day of the third year of the loan. If you repay your loan in full within the first 2 years, you will not be charged any interest.
If you default on your loan, it may become immediately due and payable and default interest may be charged.
Interest on top up loans
Existing borrowers who apply for a top up loan will have 2 separate loans with 2 separate interest-free periods. For example, for the:
- existing SBCS loan, the interest free period applies 2 years from the date the loan was made available to you
- top up loan, the interest free period applies 2 years from the date the first drawdown of the top up loan was made available to you.
If you choose to receive the top up loan in up to 4 separate amounts (up to the maximum loan amount) instead of a single lump sum, the interest-free period starts from your first drawdown of the top up loan. Any further drawdowns do not create a new interest-free period.
Our usual repayment options are available to make payments towards your Small Business Cashflow (Loan) Scheme (SBCS). The tax type for SBCS repayments is SBC.
You can request that we apply a tax refund owed to you towards your loan balance. If you'd like to do this, you'll need to contact us in your myIR account. Refunds may be used to pay off other tax debts in the first instance, if you have them.