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Danske Bank has confirmed that it will be writing to customers to clarify the exact payments to be made under the UK government’s bounce back loan scheme.
It comes after a farmer contacted the Irish Farmers Journal querying the amount to be paid. His loan agreement, which was for a £10,000 loan, suggested that he would have to pay a minimum each month of £182.17.
However, our calculations suggest that a farmer taking out a maximum £50,000 loan under the scheme, will make monthly repayments from month 13 onwards of around £887.40.
For a £10,000 loan those monthly repayments should be around £177.50, just under £5 less per month than indicated by Danske.
All the other main banks in NI are understood to be indicating repayments in line with our calculations.
On enquiry, a spokesperson for Danske in NI explained that the initial facility letters have been generated by an automated process which doesn’t account for the first 12 months interest being repaid by the British Business Bank, and a 12-month payment holiday.
“The actual amount paid by our customers is NIL in year 1 followed by repayments of approx. £177.60 for a £10,000 loan as described. We will be writing to all of our customers noting the exact monthly repayment figure prior to them beginning to make repayments” confirmed the Danske spokesperson.
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