|
Church and religious loans come in two varieties. First,
the church loan is a loan that is intended for the building
of a church (or for additions to the church). Second, a
religious loan is a loan to a member of a congregation from
a church.
Church loans can be from independent loan institutions
that specialize in loans to churches of all denominations.
Others, such as the Baptist Church Loan Corporation specialize
in offering loans for the advancement of a particular faith.
Some church lenders will also offer loans to schools and
nonprofit organizations as well.
Churches or would-be churches can take advantage of church
loans since they typically offer lower rates, more borrowing
options and faster response times to loan applications than
do standard loan companies. Mortgage loans and unsecured
loans may be offered.
Some typical church loan uses:
- Construction of new buildings.
- Complete renovations.
- Improving accessibility.
- Purchasing an organ.
- Buying property for expansion.
- Paving parking lots.
- Repairing or replacing roofs.
- Replacing heating and air conditioning systems.
- Refinancing existing mortgage loans.
- Purchasing parsonage / teacher-age.
There are a number of churches that at times will secure
loans from their own members, mostly for capital improvement
projects. One of the pitfalls of this type of loan is that
it changes the relationship from a spiritual one to a financial
one as well.
Religious loans are loans from the churches themselves
to members of their congregations. While not common, there
are a few churches offering loans in certain communities
to encourage membership in their own church.
One such instance is the Congregation Beth Israel in Malden,
Massachusetts. According to the Associated Press, "Once
the center of a thriving Orthodox Jewish community, Beth
Israel in the Boston suburb of Malden is trying to breathe
new life into a population that has declined. The synagogue
peaked with 300 members in the 1950s; today it has just
100.
"Rabbi Yitzchak Zev Rabinowitz wants to change that,
reviving the Orthodox presence here and making Congregation
Beth Israel its epicenter. So the congregation is advertising
low-interest home loans to any Orthodox family willing to
move into the area."
So, no matter whether the church is giving out the loan
or receiving the loan, there is a specialized area in the
loan industry that many haven't even considered. Church
loans and religious loans may make sense for many with these
very specialized needs.
|
