Formation & Structure

Formation of a Borrowing Community

If a number of people have a common interest or concern, they may agree to form a Borrowing Community and collectively take out a Prometheus loan.  Community strength and communications are enhanced if all members live in the same area.  Repayment can be worked out in two ways. Starting from the needs of the recipient, each member of the Community contracts to repay a proportion of the total loan plus interest. This is paid regularly into a co-ordinated pool account, from which single monthly payments are made to Prometheus. Alternatively, a Borrowing Community may prefer to start from the capabilities of its members. The group finds out how much money individual members are prepared to pledge over a given period of maximum two years. The total amount of these pledges then becomes the equivalent of a loan, which forms the actual gift plus interest for that period.

How is it organised or governed?

An important part of setting up a Borrowing Community is to have a co-ordinator: a member who can act as treasurer to collect people's commitments, guarantees and repayments. Prometheus will ask the co-ordinator to write a letter of intent, outlining his or her commitment to ensuring this task is carried out, and to finding a replacement if necessary. How the payments are arranged is up to the Borrowing Community: automatic payments into a trading bank account is often most practical. The loan contract will require that a single monthly payment be made to Prometheus. It is advisable to deposit one month's payment in the trading bank account in advance, to serve as a buffer should an individual payment be missed. This simple precaution has proved to be vital for the successful working of a Borrowing Community.