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The LLL only provides loans to approved Lutheran Church of Australia (LCA) projects, such as Lutheran schools, churches and care facilities. The LLL does not provide loans to individuals.

Interest rate

The loan interest rate has reduced from 3.90% to 3.15%, effective from 1 April 2020 for all LLL borrowers. This follows an earlier reduction in the loan interest rate on 1 January 2020 from 5.00% to 3.90%.

Although the loan interest rate is a variable rate, and market rates have fluctuated significantly since the previous loan interest rate change in 1973, LLL has maintained a stable loan interest rate during this time. However, the unprecedented low interest rate environment we now operate in has necessitated these changes.

Loan interest is calculated on daily balances and charged quarterly on 31 March, 30 June, 30 September and 31 December.

LLL treats all LCA borrowers equally and doesn’t apply a different interest rate based on the size or risk of the borrowings.

No fees or charges

LLL loans have no up-front application fees or ongoing fees and charges.

LLL loans do not attract any of the following typical loan fees, which can add substantially to the total loan costs and repayments provided through other commercial lenders:

  • Application fees
  • Line fees
  • Service fees
  • Administration fees
  • Rollover fees
  • Term extension fees
  • Early exit fees
  • Document preparation fees
  • Security registration fees.

Valuation costs, where required, are charged to the borrower.


LLL has a standard loan term of 15 years.  A term of up to 20 years can be negotiated where needed (e.g. new or expanding schools, congregational manses, etc.), which can include an interest only repayment period of up to 5 years (i.e. up to 5 years interest only repayments + 15 years principal and interest repayments). Loan terms cannot exceed the useful life of the asset being acquired.

Interest only repayments can be negotiated during the life of the loan if required provided the total loan term does not exceed 20 years.

This long term stability with LLL loan terms means that borrowers are not locked into short term loan contracts that require renegotiation at the end of each period and potentially incurring an additional cost, time and effort on the part of the borrower.

Matching Deposits

LLL loans are required to have sufficient matching deposits maintained during the life of the loan.  However, a flexible approach is taken to this condition, including the matching deposit pools maintained by each Regional Schools Office to support individual school borrowings.


Loan reporting is undertaken via existing reporting channels with the local LCA District and/or Regional School Office. This assists borrowers to avoid duplicate reporting.

Other benefits

  • No penalties for extra repayments or early payout of a loan facility.
  • Repayment holiday available where loan repayments are in advance.
  • Overdraft facility is available for schools at 5.00% per annum, subject to the application process in the local District.
  • LLL is the only loan provider that operates exclusively to support and assist Lutheran Church entities. LLL assists Lutheran Church entities in obtaining finance to continue their ministry and mission including where they may struggle to obtain finance from external lenders.

LLL has a dedicated loan team to assist in any applications or existing lending queries. They can be contacted at or 1800 556 457.

The appropriate application form (see below) should be used with all sections completed in full and submitted to your local LCA District office, together with supporting documentation detailed in the application forms. All required information must be submitted with the application to ensure prompt processing. Contact your local LCA District office to obtain details about the application process and estimated timeframes for the processing of applications.

Download the School Loan Application

Download the Congregation Loan Application

Download the Retirement Villages Application

Download the Residential Care Application

For applications for other LCA entities, including loan variations and any other inquiries, please contact the LLL loans department on 1800 556 457.