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 £25,001 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 agree loans of £25,000 or less.  

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.

Our Standard Loan Interest Rate is a variable interest rate, normally set at 3% above Bank of England Base Rate.   On a temporary basis, with effect from 1 March 2023, the margin was reduced to 2.50% above base rate.  And from 1 August 2024 it was reduced further to 2.25% above base rate.

For general information about our Loan Fund read pages 3-5 of leaflet M01 Loans to 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.

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

Deposit Accounts: 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.