Lloyds TSB to pass on rate cuts to business customers

Wednesday, 03 December 2008 12:00

Lloyds TSB is helping its small business customers through the economic downturn by unveiling a six-point pledge which includes greater guarantees on loans and overdrafts.

It has drawn up a charter, which also includes an assurance it will pass on future Bank of England base rate cuts in 2008 and 2009 in full to all its commercial customers.

The bank has vowed not to change the price or availability of overdrafts during customers' agreements and it will agree to any reasonable request for short term finance.

On renewal of overdrafts, Lloyds TSB said, it would only alter the limit or price if the risks associated with that customer had changed materially.

It also promised not to switch small business borrowing from the Bank of England's base rate to Libor, the rate at which banks borrow from each other.

John Maltby, managing director of Lloyds TSB Commercial, said the charter was designed to inject much-needed business confidence. He said lending to small and medium enterprises (SMEs) had grown 18 per cent over the last year.

Maltby added: "The measures in our new charter announced today take our existing approach a step further and mean that businesses than bank with Lloyds TSB have the best possible support for the challenges to come."

The bank is also hosting a series of business seminars to provide expert advice to its business customers.

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