Insertion of regulation 21C (interest on plan 5 loans)U.K.
This section has no associated Explanatory Memorandum
28. After regulation 21B insert—
“Interest rate on plan 5 loans
21C.—(1) A plan 5 loan bears interest at the standard interest rate.
(2) Interest accrues beginning with the day on which any part of the loan is paid.
(3) Interest is—
(a)calculated on the outstanding principal of the loan daily, and
(b)added to the outstanding principal of the loan monthly.
(4) This regulation is subject to regulation 20B (interest rate not to exceed prevailing market rate).”.