Loans (including the BU Loan Fund)
Churches sometimes need to borrow money - maybe for a new site or to enlarge or redevelop existing buildings or to buy residential property. Our Leaflet Loans to Churches gives information about various sources of loans and we operate the Baptist Union Loan Fund which is specifically geared to the needs of Baptist Churches.
The Baptist Union Loan Fund (BULF) gives loans to churches in membership of the Baptist Union of Great Britain, Baptist Union of Scotland or Baptist Union of Wales. Loans are normally between £25,000 and £1,000,000 (although we will consider applications for larger loans) and can be repaid over 10, 15 or even 20 years. We are currently unable to give loans of less than £25,000.
We are also able to give short-term loans to churches needing to bridge the gap between the purchase of one property and the sale of another although we do charge a higher rate of interest for these. For more information see the relevant leaflet below.
From January 2019, we will be able to offer loans of between £25,000 and £50,000 to any church wishing to pay off their debt to the Baptist Pension Scheme
. These loans, which are only available to churches with a debt in excess of £25,000, can be repaid over any term up to 15 years, but we would encourage churches to aim for a loan over 10 years or less. At the current rate of interest, a loan of £25,000 over 10 years will mean monthly repayments of around £250 (£182 per month over 15 years). Larger loans – up to 100% of the pension debt - will continue to be available to churches with a cessation event before March 2017. Application Forms and Guidance notes in connection with Pension Loans can be obtained from Steve Kaney or Marshall Rowan in our Pensions Team – for their contact details please see http://www.baptistpensions.org.uk/contact/
Our Loan Interest Rate is a variable interest rate - currently fixed at 3% above Bank of England Base Rate. From 20 March 2020 our interest rate is 3.1%.
For general information about our Loan Fund read pages 3-5 of leaflet M01 Loans to Churches.
Loan Fund Application Forms and Guidance Notes
All our application forms and guidance notes (except those relating to Pension Loans) can be accessed using the links below.
M02 Loan Fund Application Form
M03 Guidance Notes on M02
M04 Loan Fund Application Form for Manse Purchases
M05 Guidance Notes on M04
M07 Short-term loans for Churches
Use this link for detailed information about our Loan Fund lending criteria and sanctioning procedures
Use this link to find stories of churches helped through a BULF loan
We are only able to have a Loan Fund because of the churches which deposit their money with us.
We currently offer a range of Deposit Accounts for BUGB member churches and more details about these can be found on our Deposit Accounts page
The BUC is only able to enter into a loan that is a relevant credit agreement (as defined by the Financial Services and Markets Act (2000) (Financial Promotions) Order 2015) as lender for the purposes of the business of a church (or, if the church is unincorporated, the business of the church trustees) and not for any other purpose. Please see loan leaflet M01 for more information.