Borrowing from Hermes
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 £300,000.
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:
- What your venture does and the main features of its more recent history.
- As appropriate, who is involved and a bit about their background.
- The project for which you are seeking a loan.
- The costs of this project and how these are to be met.
- Last two sets of audited / independently examined accounts.
- Draft accounts for most recent financial year end, if not yet audited/independently examined.
- Management accounts for current financial year.
- 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.
- 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.
- Over what period you would like to repay.
- Confirmation that, in your constitution documents, you have the necessary powers to borrow money and give security.
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:
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 does vary from time to time.