Mutual Aid Fund groups undergo an intense process of training and capacity building before any loans are made. By developing member organisations financial capabilities as well as providing access to finance the scheme 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?
Successful applicant organisations begin to accumulate shares in London Rebuilding Society whilst undergoing a 'Learning to Lend' training programme.
Once the organisation has completed the training course, developed a robust lending policy and financial plan and gained a consumer credit licence they recieve a loan from London Rebuilding Society of up to 4 times the value of their shareholding.
The organisation makes loans to its members and uses the interest it earns to make more loans and repay the interest on the loan from London Rebuilding Society.
As the organisation levers in further funding and diversifies its income stream it begins to repay the capital to London Rebuilding Society.
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.