Charity Bank
A savings and lending bank owned by social-sector institutions, making secured term loans of £150k to £7.5m to charities, social enterprises and registered providers delivering UK social impact.
What they do
Charity Bank lends depositors' money to mission-led organisations: charities, social enterprises, community interest companies, community benefit societies and registered social landlords. Facilities are secured term loans against a first legal charge over property, from £150k to £7.5m, with the smaller product priced publicly at 3.6 per cent above base rate with a 1.95 per cent arrangement fee and no exit penalty unless refinanced elsewhere. Larger loans are priced case by case. Underwriting expects three years of accounts, management figures, forecasts and a board that can carry the plan.
Where they fit in a lower-mid-market raise
For a social-sector borrower funding a building, an expansion or a refinance, this is patient, transparently priced money from a lender that treats social impact as part of the credit rather than as a preface to it. A £3m to £7.5m facility is written standalone; beyond that the bank syndicates with other social lenders rather than declining, which keeps larger projects in reach.
Where they are not the fit
Conventional corporates, sponsor-backed buyouts and management acquisitions of commercial businesses are all outside the mandate, as is speculative development. The borrower must be incorporated, UK-registered, trading for more than two years and carrying a genuine social mission. Property security is required, so an unsecured facility is not available at any size.
Published terms
- Pricing
- Published on the up-to-£750k product: 3.6% above base rate, 1.95% arrangement fee, no commitment fee, no early-prepayment fee unless refinanced elsewhere. Larger loans priced case by case (not published)
- Speed to terms
- Not published
- Sponsored or sponsorless
- Neither conventional corporate nor sponsor-backed LBO borrowers are eligible; lends only to mission-led charities, social enterprises, CICs, community benefit societies and RSLs. No private-equity sponsor appetite
- Where they lend
- UK-wide (GB); borrower must be UK-registered and deliver UK social impact
- How they decide
- Secured lending against a first legal charge over property; application pack of 3 years financial statements, management accounts, forecasts and board experience; dedicated Relationship Manager from onboarding to completion; broker/introduc
- Search funds and ETA
- No published route for search-fund or first-time acquirer borrowers
- Personal guarantee
- Not typically required on the published terms: Charity Bank states it does not require personal guarantees from trustees
As published by the lender and last reviewed August 2026. Terms quoted on a deal are set by the credit, not by a published band.
The desks that lend
Charity Bank lends through 2 separate books. Which one reads a deal decides the security, the covenant package and the band, so the question is rarely whether Charity Bank lends, but which of these would own it.
Secured term loan (over £500,000)
- Facility
- £500k to £7.5m
- Security
- First legal charge over property assets
- Funds
- Growth · Refinance
- Rules out
- Social-sector borrowers only (charities, social enterprises, CICs, community benefit societies, RSLs); Must be incorporated and UK-registered; Must be trading over 2 years; Must have clear social mission
Secured term loan (up to £750,000)
- Facility
- £150k to £750k
- Security
- First legal charge over property assets
- Funds
- Growth · Refinance
- Rules out
- Social-sector borrowers only; Secured on property (65% commercial or 70% residential loan to value); Pricing 3.6% over base + 1.95% arrangement fee; Trading over 2 years
Limits that apply across the firm
Stated limits, taken from Charity Bank’s own published criteria, beyond the ones each desk carries above. A limit is where a lender starts from, not where it always ends: several of these move on a strong enough credit.
- Secured on property (max 65% commercial or 70% residential loan to value)
- Standalone ceiling ~£7.5m; larger only via partnership syndication
- No appetite in mission-led organisations., pe sponsor-backed lbos or uk-registered
How they sit against the category
- Its published ceiling is £7.5m; 29 of the 42 challenger and specialist banks here go at least as high.
- 18 of the 42 publish an indicative price at all; it is one of them.
Counted across the 42 challenger & specialist banks in this directory, on what each one publishes. What a lender discloses and what it will do are different things.
Questions this page answers
How large a facility does Charity Bank write?
Published facilities reach £7.5m, and the bottom of the published range is small-ticket business rather than a corporate facility. A band is what a lender states it will do, not what it will do on a given credit.
Does Charity Bank lend to search funds or ETA buyers?
Not on the published evidence. Charity Bank publishes no route for search-fund or first-time acquirer borrowers. A searcher's route to a lender usually runs through the quality of the target and the equity behind it.
Does Charity Bank lend to companies without a private-equity sponsor?
Yes. Charity Bank lends to owner-managed and corporate borrowers, and publishes no private-equity sponsor proposition.
Where does Charity Bank lend?
UK-wide (GB); borrower must be UK-registered and deliver UK social impact.
What does Charity Bank lend?
The published product set is secured term loan. Published sector focus is arts, charities, community, education, environment.
Does Charity Bank require a personal guarantee?
Not from trustees. Charity Bank states that it does not require personal guarantees from trustees; the trustees of an unincorporated charity are liable for the loan by default.
On the record
2025: loan book £365m, deposit book £420m, net profit £2.8m (High — Charity Bank news release.
2025: record £96.6m new loans approved, up from £86.0m in 2024 and £68.7m in 2023 (High — Charity Bank news release.
2002: over 1,400 loans totalling more than £605m (High — Charity Bank news release.
2025: named Ethical Financial Services Provider of the Year, Charity Times Awards (High — Charity Bank news release.
Sources: charitybank.org
This profile is a curated reference note drawn from public sources, not financial advice or a recommendation. Appetite and terms change; a lender's fit for a given credit is established by approaching it, not inferred from a page.