Barclays says the additional lending will be directed by commercial terms and credit criteria. It will split the funds evenly, offering £5.5bn in residential mortgages and £5.5bn to businesses.
The business budget includes the £1.5bn increase in lending to small and medium-sized businesses announced on at the end of 2008.
Speaking at Barclays Annual General Meeting today, group chief executive John Varley said: “At a time when customers are seeking to cope with the economic downturn, and governments and supervisors are dealing with the effects of the financial crisis, we want to do our part in getting credit to customers.
“Activity by households and businesses will help restore sustainable growth to the UK economy. This is a good time to lend, in circumstances where the commercial and risk terms make sense to our customers and our shareholders.”