Borrowing from Hermes

South Devon Steiner School

A loan from Hermes enabled the South
Devon Steiner School to build its
new Kindergarten building housing
four classrooms and a family centre.

The amount of funds available for lending changes frequently, so it is advisable to telephone or e-mail us in the first instance to check how much we have available to lend at the time. Depending on funds available, loan sizes vary from a few thousand pounds up to £500,000.

The rate of interest we charge on loans is usually 4% (variable), and borrowers are also required to pay an arrangement fee of usually 1% when the loan is drawn down. We generally make loans on a fully secured basis, and borrowers must also pay the cost of arranging such security (solicitor's / valuer's fees, etc.).

Hermes does not have a loan application form. If you would like to apply for a loan, please let us have the following information:

  1. What your venture does and the main features of its more recent history.
  2. As appropriate, who is involved and a bit about their background.
  3. The project for which you are seeking a loan.
  4. The costs of this project and how these are to be met.
  5. Last two sets of audited / independently examined accounts.
  6. Draft accounts for most recent financial year end, if not yet audited/independently examined.
  7. Management accounts for current financial year.
  8. Budget for next financial year with key assumptions (if you are a school or kindergarten, please send class-by-class pupil number analysis for last 2 years, current year, and next year.
  9. What security would be available. For shorter term loans, security can include personal guarantees in addition to land and buildings, providing the prospective guarantors can afford to offer such security.
  10. Over what period you would like to repay.
  11. Confirmation that, in your constitution documents, you have the necessary powers to borrow money and give security.

Repayment illustration

With an interest rate of 4% per annum, monthly repayments on a £50,000 loan would be as follows:
      Loan over 5 years:
Loan over 10 years:
Loan over 15 years:		       £920.83
£506.23
£369.84

Repayments would be half this for a £25,000 loan, and twice this for a £100,000 loan, etc. Please note our rate of interest can vary, although this is rare.