The exact interest rate will vary depending on the specific competition, company financials and external economic conditions. Typical rates are between 3.7% and 7.4% – well below normal commercial lending rates.
From Innovate UK:
“The interest rate is fixed at 7.4% although during the availability (R&D) period and the extension (pre-commercial) period only half is payable (3.7%) and half is deferred until the repayment period. The duration of this period will be set out in the competition brief. You will need to make repayments of the total amount you have borrowed, plus any interest deferred during the availability and extension periods.”
