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School Project Loans

The LLL provides loans to the Lutheran Church of Australia (LCA) for educational institutions associated with the LCA. No commercial or personal loans are made by the LLL to church members or the general public.

The LLL does not approve loans. The approval process is as follows:

  1. Application initiated and approved by the borrower (e.g. School)
  2. Approval granted by the relevant LCA Regional School office
  3. Approval granted by the relevant LCA District Church Council
  4. 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 falls 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 approximately 15 years. Repayments should be made monthly if possible, or at least quarterly.

Please contact your local LCA Regional School office or the LLL if you require a full copy of the LCA Loan Rules.

Loan application forms are available from LCA Districts. 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.

Note: In some cases, loans are made available to schools from the LEA Special Loan Facility (SLF) without the need for Matching Deposits. Contact your local LCA Regional School office for further information about SLF loans.