What must you record when you enter into a loan?

If you enter into a loan over £500, you must record these details: 

  • the required details of the source (please see Who can you accept donation and loans from? for guidance on the details you must record for each type of source)
  • the section of the party that has entered into the loan (central party or an accounting unit)
  • the nature of the transaction – whether it is a loan, credit facility or security arrangement
  • the value of the loan
  • the date the loan was entered into
  • the date the loan is due to be repaid or a statement that it is indefinite, or otherwise how the date will be determined under the agreement
  • if the loan ended, the date it ended
  • the rate of interest – or how the rate will be determined under the agreement, or a statement that no interest is payable
  • whether the agreement contains a provision that enables outstanding interest to be added to the sum owed
  • whether or not any security has been given for the loan
Last updated: 31 March 2022