Regulation 24 InterestI1

Subject to paragraph (2), if the Scottish Ministers determine that loans are to bear interest, loans made in each 12 month period commencing on 1st September will bear interest at a rate which will result in an annual percentage rate of charge determined in accordance with rules made by the Financial Conduct Authority under article 60M (total charge for credit) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001^f1 (“the Order”) for the purposes of Chapter 14A (regulated credit agreements) of Part 2 of the Order equal to the percentage by which the retail prices all items index published by the Office for National Statistics for the month of March immediately preceding the commencement of that period has increased compared with that for the previous March.

If the rate in paragraph (1) exceeds the rate for the time being specified by article 60G(3)(d) (exempt agreements: exemptions relating to the total charge for credit) of the Order, loans will bear interest at the rate so specified.

Interest is calculated on the principal outstanding daily, and is added to the principal monthly.