The Union makes loans to Clubs that are and remain in membership of the Rugby Football Union. These are normally for purposes connected with the acquisition, improvement and repair of premises associated with the playing of Rugby Union Football. Exceptionally they may be made for other purposes, which the Union considers to be in the best interests of the Game.

The conditions on which loans are made may be varied from time to time by the Union, but for the guidance of Clubs considering making an application the following information is given for applications made between 1st July 2001 and 30th June 2002.

1.    The maximum Loan will not exceed £50,000.
2.    The Club must be able to show to the satisfaction of the Union its ability to meet the balance of the capital cost of any specific project, the cost of adequately maintaining the facility after completion and the cost of  loan repayments and interest.
3.    The Club must normally have security of tenure of its premises for a minimum period of twenty-five years either through the ownership of freehold or by means of a Lease, there being in neither case covenants or other encumbrances which substantially and adversely affect the value of the property.
4.    The Union will require a Charge on the Club's premises and to be satisfied (if necessary by means of a valuation conducted by the Union's Valuer) that the Union's loan is adequately secured. In addition, the Union may call for guarantees from not less than six or more than ten persons connected with the club all of whom will be required to confirm that they are aware of the potential liability and have taken seperate professional advice.
5.(a) Loans of £6,000 or less must be repaid by instalments within five years.
   (b)      A longer period of repayment may be allowed for Loans over £6,000; depending on the circumstances repayment may be spread over a period of up to ten years.
6.      Interest will be payable on the outstanding balance and the Union reserves the right to vary the interest rate at any time on 28 days' notice to take into account interest rates which the Union is called upon to pay.  This interest will never be charged at an Annual Percentage Rate greater than one per cent above National Westminster Bank Base Rate obtaining from time to time. Interest is charged net of income tax; it is the responsibility of the Club to account for and pay such sums as may be due to the Inland Revenue.
7.    All instalments of loan principal and interest payments shall normally be paid quarterly unless otherwise agreed with the Union. A Direct Debit Mandate for such payments will be required.
8.    During the repayment period the Club will be required to supply each year to the Union and to any personal guarantors a copy of its Annual Accounts (specifically including its Profit and Loss Account, Balance Sheet and Cash Flow Statement) not later than three months after the end of each accounting period with such further information as the Union may require. Failure to comply may result in the loan being called in.

 All loan applicants should particularly note the following points: -
(a)      Application Forms for loans may be obtained from the RFU Finance Department, Rugby House, Rugby Rd, Twickenham TW1 1DS. 

(b)   Before a formal decision can be given on any application it must be approved by the Club's Constituent Body. The application must then be submitted to the RFU Finance Department accompanied by plans, estimates, full supporting evidence, balance sheets and accounts of the club for the last three years, together with a statement showing how all loans can be serviced and indicating where the balance of any required funds is to be obtained.  It is then considered by the relevant RFU Committee.

(c)   The RFU Finance Department will be pleased to assist informally on questions relating to loan applications but it must be clearly understood that the Union is not committed to make any loan until the completed application form has been formally approved. Clubs should not therefore incur commitments or liabilities on the assumption that a loan will be forthcoming until they have received notification that formal approval has been given.

(d)   A Club must take out its loan within one year of notification of formal approval, or else apply for an extension beyond that time otherwise the offer of the loan will lapse.