Citibank is confident that pharmacists will take up its government-backed pharmacy loan scheme because of its "attractive" interest rate.

The bank said it expected the scheme's interest rate, currently at 1 per cent, to attract all types of pharmacies as they looked to maintain cashflow or expand their businesses.

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	Citibank will offer pharmacists loans at an interest rate combined of a fixed of 0.5 per cent plus the LIBOR rate – a fluctuating interest rate estimated by London banks that stands at 0.5 per cent.

The initiative came as part of a government drive, announced in October last year, to offer pharmacists access to low-cost loans while they were waiting for their NHS payments.

Earlier this month, a C+D poll suggested that just one in 10 pharmacists planned to use the scheme, as readers remained unsure of the benefits.

But, after talking to pharmacy bodies, Citibank said it believed that many pharmacists would see the loan scheme as a good opportunity. It would be "attractive to all types of pharmacy, either big or small", said Citibank director Anirudha Panse.

"For all the pharmacies who are having either cash problems or have ambitious plans to expand – and of course pharmacists who a borrowing at a higher cost – this will be a good scheme because this means discount rates for them," he told C+D.

Pharmacists will have until February 5 to enrol on the Citibank website to be included in the scheme when it comes into effect in April.

Example for £65,000 approved payment with 30-day payment terms

Amount borrowed – £65,000

Typical number of days financed – 22

Floating rate of interest – 1% p.a.

Cost to contractor of borrowing – £39.17 (calculated as £65,000 x 1% x 22/365)