What is the difference between the two loans?
Fundamentally, the no-interest loan is for the development of a new business or new business idea and to be used to get you started in business. The low-interest loan is for an established business and to be used to help you get to the next stage of your business.
How many rounds are held a year?
Expressions of iInterest are accepted on an ongoing basis.
How many loans are available?
12 - 15 per year.
Will I have to prepare a budget?
You will be asked to provide a simple personal budget and repayment schedule as part of the application for a no-interest loan. Granting of your loan may be deferred should the repayments required cause you additional financial stress. In this case you will be referred to Care Financial Services in order to assist you with your financial situation. Your loan application will then be reviewed once your financial situation improves and you are able to meet the repayment schedule without it causing undue hardship.
Low-interest loan applications require a business budget.
What is involved in the meeting with the client manager?
This is your opportunity to talk to your business idea and loan application with Lighthouse client managers. It is also an opportunity for you to ask questions about the program.
Are there any other requirements under this program?
You will be required to work with a Lighthouse client manager for the duration of the loan. This may require you to meet with your client manager periodically and to participate in any agreed training or skill development activities necessary to help you build your business. Meetings with your client manager can take place in person or by telephone and/or email.
What is Bizlab?
BizLab is an online tool to help assess your understanding of market viability, risks and business model for your business. Your Lighthouse client manager may suggest that you use this tool and can review the report and work with you to address emerging issues from your assessment.
What are preferred repayments?
Fortnightly repayments are scheduled for loans with the expectation that a loan will be repaid in two years. As an example, minimum repayments of $60 a fortnight pay off a $3000 loan in two years.
Can I come back for a larger low fee loan if successful in getting an interest free loan?
Yes, if you satisfy the required criteria.
How is the interest calculated on the low-interest loans?
The interest is calculated on the total amount of the loan.
Will I need to give personal security or guarantees to qualify for a microcredit loan?
Lighthouse will evaluate your loan application based on the commercial viability of your business idea and your ability to repay the loan. Lighthouse is not a financial institution and this loan program does not require security like other institutions.
How much can I borrow under the program?
Up to a maxiumum of $3000 for a no-interest loan and between $3,001 and $10,000 for a low-interest loan.
What are the terms of the loan?
The terms and conditions of the loan will be negotiated by Lighthouse and the successful applicant and are connected to the purpose of the loan and the applicant's ability to meet agreed repayments.
What is the interest rate for the loan?
What if I can't meet my loan repayments?
Lighthouse recognises that although there will be a rigorous screening process in terms of granting microcredit loan applications, there are some clients who may not have the capacity to pay their loan due to hardship or change in circumstance. It is the loan recipient's responsibility to contact Lighthouse to discuss amending the repayment schedule or a brief reprieve from making repayments.
What is the default process?
Lighthouse has made a commitment that all efforts are made to recoup debts and will contact the loan client by phone and through correspondence three times.
What is a defacto relationship?
This is a relationship where costs of living and expenses are shared.