SCHEDULE 1TERMS OF LOAN IN PURSUANCE OF THE RIGHT TO A LOAN
1
Repayment of the amount secured shall be made in equal instalments of principal and interest combined.
2
1
The period over which repayment is to be made shall be—
a
three years, in respect of a loan of less than £1,500;
b
five years, in respect of a loan of £1,500 or above but less than £5,000;
c
ten years, in respect of a loan of £5,000 or above;
or, at the option of the borrower, a shorter period.
2
For ascertaining the period of repayment, the amount of the loan is the aggregate of the amount of the loan made in pursuance of the right to a loan under regulation 2 and the amount of any loan made under regulation 5 in respect of any part of the service charge which does not qualify for a loan in pursuance of the right.
SCHEDULE 2INTEREST RATES AND ADMINISTRATIVE EXPENSES
The rate of interest1
The rate of interest payable on the loan shall be such reasonable rate as may be determined by the lender except where the lender is a local authority in which case the provisions of Schedule 16 to the Act shall apply.
Administrative expenses
2
Subject to paragraph 3, the administrative expenses of the lender, or any part of them, in connection with a loan may be charged by the lender to the borrower.
3
In a case where a loan is made solely in pursuance of the right to a loan the administrative expenses may be charged by the lender to the borrower to the extent that they do not exceed £100.
4
The expenses so charged in accordance with paragraphs 2 and 3 above, may—
a
at the option of the borrower in the case of a loan under regulation 2 (the right to a loan), and
b
at the option of the lender in the case of a loan under regulation 5 (the power to make loan),
be added to the amount of the loan.