We have a Community Loan Program because we are a Community. It is one of the ways we help each other.
Our Community Loan Program is a form of peer-to-peer lending between Members. Members who borrow from our Community pay interest on their loans, and Members who participate in the program earn interest on their Accounts.
We prioritise loans to Members in underbanked communities to promote financial inclusion and improve our Members’ way of life.
Profits from our Community Loan Program help fund our Community.
When we loan money to other Members in our Community, we must, of course, be very careful to protect Members’ money. We only loan against secured property. We do not loan more than 50% of the secured property’s value. Maximum loan amount is €500,000 (or equivalent local currency).
Members must maintain a minimum balance of US$1,000 (or equivalent local currency) in their Account to earn interest on that Account.Withdrawal Limits
Members who earn interest agree to limit their withdrawals to US$1,000 per day and US$10,000 per month. This limitation continues to apply for 3 months after a Member notifies us that they want to exit our Community Loan Program.
We are able to pay interest when Members agree to limit their withdrawals because the funds needed to be reserved for withdrawals across our Community Platform are less. We can loan some of these reserves out to Members instead. We profit-share the revenue we receive from Members who borrow, and pay some of that out as “interest” to Members who participate in this program.
We have a specialist team of experienced lenders who manage our Community Loan Program. Our team liaises with local agents in each country to document and settle loans, and ensure compliance by our Community.
In the unlikely event that there is a shortage of funds for Withdrawals, for example, if there has been a significant number of Withdrawals or if there has been a significant deterioration in the value of our loan portfolio, participating Members agree that their Withdrawals can be temporarily stopped until the financial position of the Community Loan Program has been restored.
It is each Member’s responsibility to ensure their own compliance with local laws. Where it would not be permissible for our Community to pay interest on Accounts, or to make loans to a Member, our Community Loan Program is not open to Members in that country.
To find out more about our Community Loans Program, you can email our specialist team on [email protected]