Skip to main content


Sterling Overnight Index Average (SONIA) loans are designed for those who are comfortable with variable rates of interest

Frequently asked questions

SONIA is a rate which is published and changes on a daily basis based on the average return paid on wholesale deposits, and therefore reflects the average cost that financial institutions pay to borrow from each other. Those daily rates are compounded during the course of an interest period. The actual interest rate using SONIA compounded and the related interest payment amount will therefore only be known at the end of the interest period. What this means is:

  • The period over which the daily SONIA rate is compound "lags" the interest period by 5 business days before the start and end of the interest period;
  • The "lag" results in interest being calculated from the start of the lag period to the end of the lag period;
  • This approach allows the SONIA compounded rate and related interest payment to be known 5 business days before the interest payment date. This will provide borrowers with a working week to meet the interest payment.

To apply for a SONIA loan you must:

  • Be based and operating in the UK (excluding Channel Islands, Isle of Man & Northern Ireland)
  • Have a turnover greater than £6.5million
  • Be considering a loan or revolving credit facility of £2.5million and above
  • Be over 18 years old
  • Be borrowing for a business purpose

What you need to know

Interest Rates
Every business is unique. We'll always offer you our most competitive rate based on your circumstances.

Terms and conditions apply. All loans are subject to status and eligibility. Applicants must be aged 18 or over. You must be based and operate in the UK (excluding Channel Islands, Isle of Man & Northern Ireland) and have a business purpose for your loan.

Security & Fees
Please note that security may be required. Any asset used as security will be at risk if you do not keep to the agreement and may be sold to repay your debt. Arrangement & other fees may apply.

Property given as security, which may include your home, may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

Get in touch

Find out more about how our loans may be able to help you.

Just so you know...
Enquire about Business Lending