Business loan interest rates in Ireland (2026)

The Central Bank publishes quarterly statistics on bank lending to Irish SMEs. Its figures for Q2 2026, published on 15 October 2026, show:

• Average interest rate on new SME lending: 5.59%.
• Average interest rate on outstanding SME loans: 4.96%.
• Gross new lending to Irish SMEs: €1.2 billion in the quarter, 2.4% lower than Q1 2026 and 0.4% lower than a year earlier.

The Central Bank also publishes monthly retail interest rate statistics. For August 2026, the average rate on all new loans to Irish non-financial companies was 4.43%, and 4.59% on new loans under €250,000. This series covers all company lending by banks, including large companies, so it is not directly comparable with the quarterly SME figure.

Averages describe what banks have actually lent at. They include secured loans, loans to long-established companies and State-backed scheme loans, so many smaller or newer companies will be offered more than the average.

Many Irish business loans have a variable rate linked to a reference rate, such as EuriborThe Euro Interbank Offered Rate, a benchmark showing the average rate at which banks in the euro area lend to each other over set periods, such as three or six months. or a bank’s own reference rate, plus a margin. Those reference rates tend to move with the European Central Bank’s policy rates.

After a cut in June 2025, the ECBThe key interest rates set by the ECB for the euro area, including the main refinancing rate and deposit facility rate. raised rates twice in 2026. Its deposit facility rate went from 2.00% to 2.25% from 17 June 2026, and to 2.50% from 16 September 2026. The main refinancing rate is now 2.65%.

Bank of Ireland’s published reference rates on 21 October 2026 showed three-month Euribor at 2.683% and twelve-month Euribor at 3.290% (365-day basis). If your company has a variable-rate loan, a change in these rates can change your repayments. Ask your lender which reference rate your loan uses and how often it resets.

The main banks publish standard rates for new business lending. These are starting points, not offers. The rate your company is actually offered may differ.

AIB business loan rates

AIB’s business lending rates page, stated as correct on 20 October 2026, lists:

• SME and business variable rate loans: 5.95%.
• SME and business fixed rate loans: 7.45%.
• SME and business sustainability loans (variable): 4.95%.

Bank of Ireland business loan rates

Bank of Ireland’s published rates, checked on 21 October 2026, show:

• Standard variable rate for small business loans up to €120,000: 7.02%.
• Secured variable rate for loans over €120,000 up to €500,000: 5.57%, using its Small Business Agri Rate (1.37% as at 15 September 2026) plus a margin set by loan size.
• No arrangement fee on business loans, although legal and valuation fees may apply where security is needed.

Bank of Ireland’s representative example for the larger loan is €200,000 at 5.57% variable over seven years, with 84 monthly repayments of €2,880.66, a cost of credit of about €41,975 and a total repayable of about €241,975.

PTSB

PTSB’s business banking rate sheet, correct at 28 September 2026, lists:

• Business term loan and cash flow lending from €5,000: 7.5% variable.
• Business overdraft from a €1,000 limit: 8.00% variable.
• Business mortgage loan from €50,000: 5.5% variable or fixed.
• Growth and Sustainability Loan Scheme, €25,000 to €500,000: 5.312% for green loansA loan used to fund projects with environmental benefits, such as energy-efficient equipment, solar panels, electric vehicles or building upgrades. and 5.562% for non-green loans; above €500,000 to €3 million: 4.062% green and 4.312% non-green.

PTSB also says it may charge a facility fee of up to 1% of the loan amount on term loans.

The SBCI Growth and Sustainability Loan Scheme offers reduced rates because of an EU guarantee, but no single scheme rate exists. Each participating lender sets its own pricing, and PTSB’s published rates above are one example. Bank of Ireland’s GSLSA State-backed SBCI scheme offering loans of €25,000 to €3 million over seven to 10 years through participating lenders, for long-term growth, resilience or climate action projects. page (checked 22 October 2026) gives a representative €100,000 climate loan over seven years at 5.532% variable, as at 6 October 2026. Applications go directly to a participating lender after your company gets an eligibility code from the SBCIA State-owned body that makes low-cost funding and loan guarantees available to Irish SMEs, farmers and fishers through participating banks and non-bank finance providers.. Our SBCI Growth and Sustainability Loan Scheme guide explains how it works.

Non-bank lenders often lend faster, with less security, or to companies banks will not lend to, and they usually charge more for it. Our neutral directory of business lenders in Ireland lists the main bank and non-bank lenders. Few publish full rate tables. For example, Linked Finance lends €10,000 to €500,000 over 6 to 60 months, for companies with turnover over €100,000; the rate depends on the company’s credit grade.

Products such as merchant cash advances and revenue-based finance are usually priced with a fixed fee or factor rate rather than an annual interest rate. Their cost per year depends on how quickly you repay, so compare them on total amount repayableThe full sum a company will pay over the life of a loan or finance agreement, including the amount borrowed, interest and all fees.. Our guide to business loan costs shows how to do this.

Overdrafts and short-term facilities usually cost more than term loans. PTSB’s rate sheet at 28 September 2026 shows a business overdraft rate of 8.00% variable, compared with 7.5% on its term loans. Overdrafts are also repayable on demand and can be reviewed each year, so they suit short-term swings in cash flow rather than long-term projects. If your company has been in its overdraft for most of the year, a term loan or working capitalThe money a business has available to fund day-to-day operations, calculated as current assets, such as cash, stock and debtors, minus current liabilities, such as suppliers and short-term debt. facility may cost less and be more stable.

Our working capital finance page explains the main options for day-to-day cash flow.

• Average new SME loan, all banks (Central Bank, Q2 2026): 5.59%.
• Bank standard variable business term loans (AIB, Bank of Ireland, PTSB, October 2026): about 5.6% to 7.5%, depending on lender, size and security.
• Bank fixed rate business loans (AIB, 20 October 2026): 7.45%.
• Bank business overdrafts (PTSB, 28 September 2026): 8.00%.
• GSLS loans (PTSB, 28 September 2026): 4.062% to 5.562%.
• Non-bank term loans (Linked Finance, 21 October 2026): €10,000 to €500,000; the rate depends on the company’s credit grade.

Three things stand out from the official figures this year. First, the ECB reversed direction, raising its deposit facility rate in June and again in September 2026 after cutting it to 2.00% in June 2025. Second, Euribor rose with it, so many variable-rate business loans linked to Euribor or bank reference rates have become dearer. Third, new SME lending was slightly lower: the Central Bank reported €1.2 billion of gross new lending in Q2 2026, down 0.4% on a year earlier.

State-backed lending also changed. The Growth and Sustainability Loan Scheme, which PTSB had listed as closed to new applicants in June 2026, was expanded in October 2026 and is open until 30 June 2029 or until fully subscribed. Its rates are set by each participating lender.

Lenders price each application on its own risk. The main factors are:

• Trading history and profitability, shown in filed accounts and recent management accountsInternal financial reports, usually monthly or quarterly, showing a company's recent trading, balance sheet and cash position..
• Cash flow and ability to repay. Many lenders look at the debt service coverage ratio.
• Security, such as property or a charge over assets, and whether directors give a personal guaranteeA legally binding promise by a director or other individual to repay a company's debt if the company cannot.. See secured vs unsecured business loans.
• Loan size, term and purpose. Larger secured loans often attract lower rates.
• Your company’s record on the Central Credit RegisterA database operated by the Central Bank of Ireland holding information on loans of €500 or more. and its tax compliance.
• Whether the loan is fixed or variable, and whether it is under a State-backed scheme.

This guide is about limited companies. Sole traders cannot apply through Welcome Finance. Start-ups registered as limited companies in Ireland can apply, though most lenders look for some trading history, so options may be fewer. Our small business loans guide covers the wider options. Other places to look include their own bank, their Local Enterprise Office, Microfinance Ireland for smaller loans, and Enterprise Ireland for high-potential start-ups.

1. Have up-to-date management accounts and filed annual accounts ready.
2. Make sure your company is tax compliant and can get a tax clearance certificate.
3. Ask your own bank first if you have a good relationship with it.
4. Check whether your project qualifies for a State-backed scheme such as the GSLS.
5. Compare the total amount repayable across offers, not just the headline rate.
6. Ask whether the rate is fixed or variable and what happens if Euribor or the bank’s reference rate changes.

We work with five specialist non-bank lenders, which can consider unsecured and short-term business loans, working capital, merchant cash advance, revenue-based finance, stock and trade finance for limited companies registered in Ireland. Their pricing is often higher than a bank’s standard rates, so if your company can borrow from its bank or under the GSLS, that may be cheaper. Tell us what your company needs and we’ll tell you honestly whether our panel can help, or where to apply instead. Welcome Finance is a commercial finance broker, not a lender, and is not regulated by the Central Bank of Ireland.

To compare quotes that use different kinds of rate, use our rate converter or the APR calculator.