How does the Mutual Aid Fund work?

Mutual Aid Fund (MAF) groups undergo an intense process of training and capacity building before they start lending. By developing member organisations financial capabilities as well as providing access to finance the Project empowers communities to take their economic development into their own hands.

We want to make sure that Mutual Aid Fund groups can continue to serve their members and grow in a sustainable way. So Mutual Aid Fund member groups form a close and lasting relationship with London Rebuilding Society.  

How does the Mutual Aid Fund work?

1. Preparation
With LRS support and guidance, the organisation starts exploring the idea of adding micro lending to their services. This usually takes form of informal discussions between organisation’s board, staff and members/service users. 

2. Joining MAF 
The organisation’s board writes to LRS expressing an interest in joining the programme.  In order to become a Mutual Aid Fund member, the organisation is required to become an LRS shareholder. The minimum investment is £250 (250 shares at £1 each). As shareholders, Mutual Aid Fund organisations own London Rebuilding Society.  Our member groups take an active role in shaping the Mutual Aid Fund scheme as well as the wider organisation.

3. Training
The organisation attends ‘Learning to Lend’, a comprehensive 6-day course on running and managing a micro loan fund, delivered over a period of six weeks. By the end of the course, each organisation will have a lending policy appropriate for their organisation and their members/borrowers.

4. Creating the loan fund and starting lending activity
Once the organisation has completed the training course, developed a robust lending policy and financial plan, they then apply for a Consumer Credit Licence. If the organisation needs a loan from LRS in order to start its micro loan fund, it can apply for a loan of up to 4 times the amount it invested in LRS shares.

5. Running the community micro-loan fund
It is of great importance that you regularly monitor the performance of your loans. LRS will be available to offer you support and guidance on one to one basis. As part of the MAF programme, you will also be asked to submit periodic performance reports to LRS.

To find out more about the Mutual Aid Fund please make an enquiry online, or contact Lana Hersak at lana.hersak(AT) or 0207 997 7333


Related pages:

The Mutual Aid Fund

Who Can Join the Mutual Aid Fund?

Mutual Aid Fund FAQs


Help us by sharing this post
  • E-mail this story to a friend!
  • Tweet this
  • Facebook
  • StumbleUpon
  • Digg
  • Google
  • LinkedIn

© 2010 London Rebuilding Society Ltd

7th Floor
45 Moorfields
London EC2Y 9AE
United Kingdom
T: 020 7997 7333
Contact Us
I&PS no. 29352R
HMRC Exempt Charity No. XR65865

Keep in touch

soc_facebook soc_flickr soc_twitter soc_rss newsletter button