HOW IT WORKS
Due to COVID-19 many people in South Africa are facing crippling economic hardship. Among the hardest hit are Individual Income Earners - proud and capable people like Uber drivers, carpenters and nail technicians - who would usually be earning their own income through services or small businesses but now find themselves unable to earn due to the measures needed to control the spread of the virus.
As the economic repercussions of the virus continue to unfold, it is becoming increasingly crucial that self-employed contributors to the economy are able to get back to earning when the virus has passed.
To respond to this, Aloan Together uses crowdfunding to connect these individuals with you – people who may have the financial liquidity to help with a short-term loan on an interest-free basis. We aim to create a partnership of mutual dignity: you can make a measurable impact on someone’s life by lending cash you don't need right now, and recipients maintain their ability to earn when things return to normal through cashflow that traditionally may not have been readily accessible.
Key to our structure is the economic benefits – recipients retain their ability to earn and continue contributing to the economy. Once loans are repaid, they can either be returned to the lender, or reinvested into the fund and paid forward to the next recipient in need. In this way, a single sum of money can help many more people and go far further than a once off donation can.
Loan amounts will be based on critical need, and will be limited to assisting with cashflow for essential items. Amounts requested may be used to provide food, healthcare needs, other essential items and services, and to ensure the borrower’s business or service survives the COVID-19 restrictions.
Please note: In order to be a sponsor, a minimum pledged amount of R500 is required. Repayments are based on honour and recipients' ability to pay back when restrictions ease: sponsors give based on the risk that their loan may not be repaid.
20 April to end Dec, pending review as the COVID-19 situation progresses.
WHO WILL RECEIVE LOANS
Consideration will be given to borrowers on a word of mouth basis, based on need and change in income. Borrowers may be required to provide proof of change in income to be considered. This initiative will be available to people who have had a steady income prior to COVID of R20k per month or less. Borrowers will need to have a South African Bank account to be eligible.
LOANS VERUS DONATIONS
Borrowers will request a loan amount from A Loan Together, for the term of the initiative, based on their monthly requirements. A Loan Together will review the amounts requested, and ensure at a maximum these requests do not exceed the difference between regular earnings and current earnings. Loan amounts requested may be used to provide food, cover rent, healthcare needs, other essential items and services, and to ensure the borrowers business or service survives the COVID-19 restrictions. In order to be a Loan Provider, a minimum pledged amount of R500 is required. You may choose to loan your money to a specific individual of your choosing. If the person you have specified has already had their funding fulfilled, we will reallocate your funds to the next in need.
For donations, no amount is too small! Every little bit helps! Funds donated will be allocated at the discretion of the fund to ensure the maximum benefit and impact for borrowers. The fund may allocate a portion of your donation directly to borrowers to write off a portion of their loan to ease their financial stress during this critical period. The fund may also use a portion of your donation as a Pay It Forward Loan i.e. When the borrower repays this loan, the money will be re-invested and used to sponsor a future Individual Income Earner in need - in the way of a Pay It Forward Loan.
TRANSFER OF FUNDS
Funds will be transferred between bank accounts via A Loan Together. A Loan Together will handle all transfers of funds between borrowers and sponsors.
Borrowers and Sponsors won't be put in direct contact unless requested by both parties (and unless explicit permission is given by the Sponsor). A sponsor may choose to remain anonymous. Your personal details will never be disclosed without your explicit permission.
There will be no interest charged on loans, this initiative is purely a liquidity transfer to assist those that are struggling with cashflow.
Sponsors may only lend amounts that they are not dependent on, and are willing to part with to assist someone in need. There will not be credit checks or vetting of borrowers beyond word of mouth, and A Loan Together’s assessment of borrowers position and intention. Sponsors must acknowledge and accept that they may not be repaid. A Loan Together will not be held accountable for any loans not repaid.
Repayment can commence no sooner than 2 months after the borrower fully returns to work. A Loan Together will work with the borrower to determine terms that are viable. Loans are not legally binding in any way but we have the commitment of the borrowers to do their best (within their means) to return the kindness offered to them, by re-paying loans on an honour and trust based agreement.
A Loan Together will pursue loan repayments until we determine that the loan will not be repaid, at which point you will be advised and it will be written off.