Lloyds Banking Group completes drawdown of a further £2 billion under 'funding for lending'
21 December 2012
- Group has completed a drawn down of a further £2 billion under the Funding for Lending scheme
- Total drawn down now stands at £3 billion, following the Group’s initial £1 billion drawdown in September
- Group continues to buck industry trend with 4% growth in net lending to Small and Medium Sized Enterprises (SMEs) and additional funding under Funding for Lending will maintain this position
- New funding will provide a one percent discount to businesses and support competitive rates for homebuyers
Lloyds Banking Group has completed a drawn down of a further £2 billion under the Government’s Funding for Lending scheme (FLS), as it continues to support future investment for the UK economy.
The Group had stated in early December that it would be applying for an additional £2 billion from the Bank of England before the end of December which it has now completed. It will pass on the full discount of one percentage point for new term lending to thousands of businesses and continues to support competitive rates for mortgage borrowers. The announcement follows the Group’s initial £1 billion draw down under the scheme in September.
Lloyds Banking Group was the first bank to draw down funding under the scheme and can draw a total of over £20 billion by the end of 2013 which it fully intends to do so.
The Group has also launched a nationwide advertising campaign to raise awareness of its FLS offer as it continues to reach out to businesses and support the growth plans of UK plc.
António Horta Osório, CEO Lloyds Banking Group said: "We are passing on the full benefits of funding for lending to businesses and homebuyers as part of our commitment to the scheme and to help foster growth in the economy."
Lloyds Banking Group provides over £50 billion of new lending every year and is the biggest supporter of UK businesses and households. The Group lent more than £10 billion to SMEs alone during the first nine months of 2012 and has continued to achieve net lending growth to SMEs of four percent at a time when net lending growth across the industry is in decline.
The Lloyds Funding for Lending offer for businesses entails:
- A one per cent reduction in the interest rate for new business loans and hire purchase,
- A discount for the full term of the loan for our SME customers and up to five years for our mid market customers
- A minimum loan amount of £1,000 with no maximum limit, and
- It will be available to all SME and mid market customers, regardless of the sector that they operate in