Synod Loan Applications
The Synod has accumulated sums of money over the years from property sales which it holds within a specified Capital fund. These funds generate interest which is used to make grants as specified by the Finance Policy. The capital is also used to make loans to churches who need sums of money to fund building projects and the like.
Such loans are available to Churches and Synod committees for a period not normally exceeding five years. The amount of each loan depends mostly upon the resources available by the Church or Synod committee for repaying the loan and the total lending by the Synod is restricted only by the amount available within the Church Life and Mission Capital fund.
The rate of interest charged is that which would have been received by the Synod on its COIF account. The interest rate is set at the commencement of the loan and adjusted at each anniversary of the loan. The loan interest is calculated in June and December of each year. A statement of the December loan balance is sent to each borrower in January for confirmation for audit purposes. Each Church or Synod committee is expected to pay the interest charged and a portion of the capital each year. If churches are able to repay their loan earlier than the period specified, early repayment is recommended.
Each Church or Synod Committee will need to complete a loan application form and provide evidence that the church/ committee has the means of repaying the loan. A spreadsheet covering the period of the loan showing the income available to the church and the loan repayments is a helpful way of providing evidence of the ability to repay the loan.
Loan applications are considered at a full sitting of the Resources committee and completed applications need to be sent in good time to the Resources Officer.