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Illustrative only. Assumes a fixed rate and equal monthly repayments (annuity). Your actual offer depends on Credicorp’s assessment of your company.
Why the benchmark changed
LIBOR was an estimate-based rate that became untrustworthy and was withdrawn at the end of 2021. SONIA — the Sterling Overnight Index Average — replaced it. It is based on real overnight transactions, so it is harder to manipulate.
Backward-looking, not forward-looking
Unlike LIBOR, SONIA is typically compounded in arrears over the interest period, so you know the exact rate only at the end. Lenders manage this with a short observation lag. It means your rate reflects what actually happened, not a forecast.
How it feeds your payment
Your rate is compounded SONIA plus your fixed margin. When SONIA rises with the base rate, your rate rises; when it falls, your rate falls, subject to any floor.
Model a move
Because the reference part moves, stress-test a rise. Enter your loan below and try a rate 1–2% higher to see the payment impact.
Where Credicorp fits
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.
See reference rate and how base-rate changes hit your repayments.
Frequently asked questions
Is my old LIBOR loan still valid?
Yes, but it should have been transitioned to a SONIA-based rate. Check your documents — legacy LIBOR references have been replaced.
Why is SONIA compounded in arrears?
Because it is an overnight rate, it is added up over the period to give a term rate. That makes it backward-looking, so the exact rate is known at period end.
Does SONIA-linked mean my rate can rise?
Yes. Like any variable rate, it moves with the benchmark. Stress-test a rise before committing and consider whether fixing suits you.
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