Charity Bank is an ethical bank that exists to lend to charities and social enterprises and other organisations where the loan is for a social purpose. They offer competitively priced loans from £50,000 up to £3.25 million, tailored terms and a team of regional managers who are social sector specialists.
Repayment terms can be for up to 25 years which can include a ten year break. A non-refundable arrangement fee (typically 1% of the loan amount, may be more for small or complex loans) is required. A commitment fee may also be required should the agreed loan not be withdrawn within 60 days of accepting the terms and conditions. No early repayment fess unless the loan is refinanced with another lender in the first five years.
Charity Bank seeks to take security where available. This can take the form of a fixed charge over property assets or investments or a mortgage debenture over the assets and undertakings of the borrower. Where there are no material assets available for security, loans on an unsecured basis will be considered however must be repaid within five years. Charity Bank does not seek personal guarantees from trustees or directors other than in exceptional circumstances.
Loans support a wide range of organisations across the arts, community, education, environment, faith, health, housing, regeneration, social care and sports.
For more information and how to apply please click here.
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