NatWest offers unsecured business loans from £1,000 to £100,000 at a representative APR of 12.24% — the highest unsecured limit among major UK banks. With no arrangement fees, no early repayment charges, and a dedicated Green Loan for sustainability investments, NatWest positions itself as the UK’s largest business bank. Here is our independent review.
- Representative APR of 12.24% - NatWest’s business loan rate sits competitively in the mid-range for UK lenders
- Highest unsecured limit at £100,000 - Best for established businesses needing substantial funding without collateral requirements
- Minimum loan amount of £1,000 - Excludes micro-businesses seeking smaller funding amounts under four figures
- Up to 42% higher rates than Santander - Alternative lenders like Funding Circle offer more competitive APRs from 6.9%
- 2-year trading history required - Eligibility criteria eliminates newer businesses despite offering the market’s highest unsecured limits
What Is NatWest Business Loans?
NatWest offers a Small Business Loan (up to £100,000 unsecured), Fixed and Variable Rate Loans (from £25,001 with terms up to 25 years), and a Green Loan for sustainability investments.
NatWest is the UK’s largest business bank by market share and serves over 1 million business customers. As part of NatWest Group (which also includes Royal Bank of Scotland), it provides a full range of business finance from micro-loans to multi-million-pound facilities.
The standout feature is the £100,000 unsecured borrowing cap — four times higher than HSBC and Barclays, which both cap at £25,000. For businesses needing significant unsecured funding from a high-street bank, NatWest is the clear leader.
NatWest Business Loans: Pros and Cons
NatWest offers the highest unsecured borrowing limit of any major UK bank at £100,000, with no fees for early repayment or loan setup, but at a higher APR than HSBC or Santander.
What Business Loan Products Does NatWest Offer?
NatWest has three main products: unsecured loans up to £100,000, larger fixed/variable rate loans up to £10 million, and a Green Loan for environmental investments.
| Product | Amount | Term | Rate | Key Feature |
|---|---|---|---|---|
| Small Business Loan | £1,000 – £100,000 | 1–7 years | 12.24% representative APR | Unsecured, no fees |
| Fixed/Variable Rate Loan | £25,001 – £10M+ | Up to 25 years | Bespoke | 3/5/7/10/15-year fixed periods |
| Green Loan | From £25,001 | Bespoke | Bespoke | For renewables, EVs, low-carbon heating |
The Small Business Loan is the core product. At £100,000 unsecured, it offers four times the borrowing power of HSBC and Barclays. The representative APR of 12.24% (for £10K–£19K loans) is higher, but within the 8–13% range depending on your risk profile and loan amount.
The Fixed and Variable Rate Loan starts at £25,001 and can reach £10 million for fixed rates (no upper limit for variable). Terms extend to 25 years with flexible fixed periods of 3, 5, 7, 10, or 15 years — the widest range of fixed-period options from any major bank.
The Green Loan is designed for businesses investing in sustainability — renewable energy, electric vehicles, or low-carbon heating systems. This is a notable differentiator from competitors who do not offer purpose-specific green lending products.
NatWest Business Loan Rates and Fees
NatWest charges no arrangement fees and no early repayment fees. The representative APR is 12.24%, with actual rates ranging from 8% to 13% depending on the amount and your business profile.
NatWest’s zero-fee policy across both arrangement and early repayment is a strong point, shared with Barclays but contrasting with HSBC (which charges early repayment penalties) and TSB (which charges a £250 arrangement fee).
The 12.24% representative APR is higher than HSBC (7.1%) and Santander (7.9%). However, NatWest offers up to four times more unsecured borrowing, which for many businesses justifies the rate premium. For a full rate comparison, see our business loan costs guide.
NatWest Business Loan Eligibility
A NatWest business current account is recommended but not strictly required. Standard credit checks apply, and specific eligibility varies by product type.
NatWest recommends that applicants hold a NatWest business current account, though this is not an absolute requirement. A standard credit check is required, and you will need to demonstrate your ability to repay from business income.
For the Small Business Loan, the application can be completed online. For the Flexible and Green Loans (over £25,001), you will typically work with a NatWest business relationship manager. If your credit is poor, consider bad credit business loans as an alternative.
NatWest vs Alternative Business Lenders
NatWest offers the highest unsecured borrowing limit among Big Four banks at £100,000 — four times higher than HSBC and Barclays, though at a higher representative APR.
| Lender | Representative APR | Max Unsecured | Early Repayment | Max Term |
|---|---|---|---|---|
| NatWest | 12.24% | £100,000 | £0 | 7 years |
| HSBC | 7.1% | £25,000 | Penalty applies | 10 years |
| Barclays | 11.2% | £25,000 | £0 | 10 years |
| Funding Circle | From 6.9% | £750,000 | £0 | 6 years |
If you need more than £25,000 unsecured from a traditional bank, NatWest is the only Big Four option. Funding Circle offers even higher limits at potentially lower rates, but as an online lender it lacks the branch network and relationship management some businesses value. For low-interest borrowing under £25,000, HSBC at 7.1% is cheaper.
Our Verdict on NatWest Business Loans
The only Big Four bank offering up to £100,000 unsecured, with zero fees, but a higher APR than HSBC or Santander.
NatWest is the best high-street bank for unsecured borrowing above £25,000, with a £100,000 cap, zero fees, and the widest range of larger loan options.
NatWest’s strength is clear: it offers four times more unsecured borrowing power than any other Big Four bank. Combined with zero arrangement and early repayment fees, the Green Loan product, and the backing of the UK’s largest business bank, NatWest is the logical choice for businesses needing £25,000–£100,000 without putting up security.
For smaller amounts, the 12.24% representative APR makes it less competitive than HSBC (7.1%) or Santander (7.9%). If you are borrowing under £25,000 and rate is your priority, look elsewhere. For a full comparison, see our best business loans guide.
