The LLL provides loans to the Lutheran Church of Australia (LCA) for Churches, Schools, Aged Care facilities and other organisations associated with the LCA. No personal loans are made by the LLL (Car loans for LCA Pastor's are provided by the LCA).
The LLL does not approve loans. The approval process is as follows:
- Application initiated and approved by the borrower (eg Congregation)
- Approval granted by the local LCA District Church Council
- Approval granted by the LCA Loans Management Committee.
All approved loans are subject to matching deposits. If the borrower cannot raise the required level of matching deposits to match the loan requested, the loan (if approved) will only be advanced to the level of matching deposits. If the level of matching deposits fall below the loan amount after the loan has been advanced, the borrower may need to refinance all or some of the loan from sources other than the LLL.
A summary of the conditions of LLL loans follows:
- All loans are subject to matching deposits
- Current interest rate of 5% per annum. Interest is added to loan accounts on June 30th and December 31st each year
- Minimum annual repayments equal to 10% of the total principal advanced (includes principal & interest). For example, annual repayments on a $100,000 loan would be $10,000 per year. Based on these conditions, the loan term is 15 years. Repayments should be made monthly if possible, or at least quarterly.
Loan application forms are available from LCA District Offices (refer to LCA link on home page for contact details). Borrowers intending to apply for an LLL loan should contact their local LCA district office to determine how long their loan application may take to process. This will generally depend on when the various committees of the LCA and LCA Districts are next meeting, and any further information that they may require from the intending borrower.
