RBS business loan review

RBS (Royal Bank of Scotland) is one of the UK's major lenders for small and medium businesses. They offer several loan products: Small Business Loans, Fixed and Variable Rate Loans, Business Overdrafts, and specialist finance options. This review covers the core products, rates, eligibility and how they compare.

Note: Information based on RBS's website as of August 2026. Rates and terms change frequently, so verify current details directly with RBS before applying.

What is an RBS business loan?

An RBS business loan is a formal borrowing arrangement where you receive funds upfront and repay them over a fixed period at a set (or variable) interest rate. Unlike an overdraft, it's a structured product with regular monthly repayments of both capital and interest.

RBS positions their loans for small to medium-sized businesses needing capital for growth, working capital, or specific investments.

RBS business loan types

Small Business Loan

This is RBS's main entry-level product. You can borrow £1,000 to £100,000 on a fixed interest rate with terms from 1 to 7 years.

The representative APR is 12.63% (though actual rates vary based on circumstances). No arrangement or early repayment fees apply for small loans and overdrafts. The online application takes around 10 minutes, and if approved, you could receive funds within 24 hours.

A personal, director, or member's guarantee is typically required.

Fixed and Variable Rate Loans

For larger amounts (£25,001 upwards), RBS offers Fixed and Variable Rate Loans. On fixed rates, you can borrow up to £10 million. On variable rates, there's no upper limit stated, though obviously subject to approval.

Loan terms stretch to 25 years. Fixed rate terms are available in 3, 5, 7, 10, or 15-year chunks. No early repayment charges apply, and you can request a capital repayment holiday (though you continue paying interest during the holiday).

Security is typically required for these larger facilities.

Business overdraft

A Business Overdraft lets you borrow £500 to £50,000 (unsecured) and pay interest only on what you actually use. There's no fixed monthly repayment – you pay interest monthly but no set amount goes to capital.

The arrangement fee ranges from £50 to £750 depending on the overdraft size. The representative EAR (Equivalent Annual Rate) is 13.37% for smaller overdrafts. RBS reviews these annually, so they're not meant as permanent facilities.

RBS business loan rates and fees

Rates vary significantly based on loan amount, term, and your circumstances. The Small Business Loan representative APR sits around 12.63% APR variable, though fixed rates exist. The Fixed and Variable Rate Loans start higher for variable (no fixed rate published) but offer competitive fixed rates for established businesses.

There are no arrangement fees or early repayment penalties on Small Business Loans or Fixed/Variable loans. Business Overdrafts, however, charge upfront arrangement fees (£50-£750).

All rates are credit-profile dependent. A business with strong turnover, profitable accounts, and clean credit history may be offered a better rate than one with weaker numbers.

Loan amounts and repayment terms

Small Business Loans: £1,000 to £100,000 over 1 to 7 years.

Fixed and Variable Rate Loans: £25,001 upwards (£10m maximum on fixed, no stated cap on variable) over up to 25 years.

Business Overdrafts: £500 to £50,000.

For Small Business Loans specifically, you can use RBS's online calculator to see approximate amounts and repayments before applying. For larger loans, you'll need to discuss with RBS directly.

Eligibility and documents required

To apply for an RBS business loan, you must be:

• Aged 18 or over
• A director (or member) of the business
• Not bankrupt or subject to a County Court Judgement
• Holding a business current account with any bank (not necessarily RBS)

You'll need to provide:

• Address history for the past 3 years
• The date your business started trading
• Business turnover for the last 12 months
• Projected turnover for the next 12 months
• Business net profit for the last 12 months
• Details of any existing business loans, overdrafts, or repayments
• Details of any personal loans, mortgages, overdrafts, or credit card repayments

RBS may ask for additional evidence to support your application.

Pros and cons of an RBS business loan

Pros:

• Quick online application (10 minutes)
• Fast funding (potentially 24 hours)
• No early repayment fees (flexibility if circumstances change)
• Fixed rates available (predictable monthly payments)
• Established, recognisable lender (stability)
• No requirement to use RBS as your main bank

Cons:

• Rates are relatively high (12%+ typical for Small Business Loans)
• Personal guarantee usually required (personal liability)
• Annual reviews on overdrafts (no long-term security)
• Limited to £100,000 on Small Business Loans (may need larger product)
• No repayment holidays on Small Business Loans (conditions apply to larger products)
• May require a fee-free Loan Servicing Account for administration

How to apply for an RBS business loan

Step 1: Calculate

Use RBS's online calculator to estimate how much you could borrow and what your repayments might look like. Getting an indicative quote doesn't affect your credit score.

Step 2: Apply online

Complete the online application form. If you have an RBS Online Banking account, you can log in with your Digital Banking credentials for a personalised experience. If not, you'll still apply online but without existing login details.

The application takes around 10 minutes.

Step 3: Get approved

RBS will run a credit check (which does impact your credit score) and assess your eligibility. They'll verify your business details match information at Companies House and your bank statements reflect the income you've declared.

If approved, you'll receive funds within 24 hours if you sign documents by 16:30 weekdays. Sometimes RBS needs to contact you for more information, which can delay things.

Do you need an RBS bank account?

No. Explicitly, you do not need to open or maintain a Business Current Account with RBS to get their business loan. However, in some circumstances, RBS may require you to open a fee-free Loan Servicing Account for administration purposes. This is not a full business account – it's purely for loan facilitation and has no transaction charges.

Alternatives to consider

If comparing lenders, it's worth getting quotes from more than one provider. RBS is competitive on speed but not always on rate. Smaller fintech lenders, credit unions, and specialist providers sometimes offer better terms for specific business types. For more information on what type of finance might suit your needs, see what is the right finance for your business.

If you're exploring options, Funding Circle offers business loans from £10,000 to £750,000 with fixed rates and terms up to 6 years. Getting a quote takes a few minutes and doesn't affect your credit score.

FAQs

Do I need an RBS bank account to get a business loan?

No. You can hold your main business account anywhere. RBS may require a fee-free Loan Servicing Account for administration, but this is separate from a Business Current Account.

How long does it take to get an RBS business loan?

The application takes 10 minutes. If approved and you sign documents by 16:30 on a weekday, you could receive funds within 24 hours. Some applications take longer if RBS needs additional information.

Can I repay an RBS business loan early?

Yes. There are no early repayment fees on RBS Small Business Loans or Fixed and Variable Rate Loans.

Will applying affect my credit score?

Getting an indicative quote doesn't affect your credit score. If you complete a full application and consent to a credit check, it will. This is a hard inquiry and will show on your credit file.

Related reading

• 10 things to know before applying for a business loan

• What is the right finance for your business?

Disclaimer

19/09/2026 – While we want to help as much as we can, the information found here is provided solely for informational purposes and should not be considered financial or legal advice. Rates and terms change frequently. Verify all details directly with RBS before applying. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here. If you have any questions, please speak to your professional adviser or seek independent legal advice.