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Wednesday, May 16, 2012

Santander plus state-backed Lloyds accused of withholding loan from firms

Lloyds and Santander were yesterday accused of starving small businesses of cheaper loans despite signing up to a government-backed initiative to make banks lend.

Two months after ministers launched the scheme to help banks provide up to £20billion of cheaper loans to firms, Santander has yet to offer this lifeline to its customers.

The Spanish-owned bank, which has 25million customers in the UK, is refusing to offer an explanation or reveal exactly when it will start offering discounted deals.

Lloyds – which is propped up with more than £20billion of taxpayers’ money – is only offering discounts on loans above £25,000.

This will infuriate its small business customers, many of whom may wish to benefit from cheaper credit for loans taken out below this threshold. Read More