Depositor funds are used to lend to Lutheran Church of Australia (LCA) organisations such as churches, schools and aged care facilities at a low interest rate of 5%
Loans are approved and repayment is guaranteed by the LCA to ensure that LLL deposits are secure. The LCA also indemnifies the LLL against any loss in the event of a loan default
Depositor funds not used for lending purposes are only invested in Authorised Deposit-taking Institutions (ADI's), for example banks
The LLL does not invest depositor funds in shares or property
The LLL uses regulations for ADI's as a guideline to maintaining its Capital Adequacy Ratio to ensure ongoing viability, and to assist in safeguarding depositors’ funds
The LLL holds substantial Reserves (Permanent Funds) which provide additional security for depositor funds. These are special capital (endowment) funds which provide an annual grant of 5% for ministry purposes.
Why not take a look at our Together in mission publication that tells the latest news on how the LLL is assisting the LCA.