How did we calculate this?
In principle, GP can borrow circa 60% from the bank, leaving 40% required from Loan Stock, therefore as bed space average cost is £35,000, £20,000 might come from the bank and £15,000 from Loan Stock. Loan Stock funding has to be in place before we can borrow from the bank, so on average, every £15,000 of Loan Stock enables us to buy another bed space. In practice, the amount we borrow from the bank depends on the supply of Loan Stock and demand for beds at any one time.
Less than 5%
A small number of our Partners are unable to pay the full return we need, so we have to subsidise them. We cannot afford to accommodate very many of these, so if you choose an interest rate lower than 5%, the forgone interest helps us to fill the gap and perhaps subsidise a few more.
These are approximate indications of how we use your Loan Stock funding, without which Green Pastures could not exist.
You can select an interest rate between 0% and 5% per annum if the term you select is for 5 years or longer. If your term is 1 - 4 years you can select an interest rate between 0% and 4% per annum.
The lower the interest rate you select, the more homeless people we can house & support.
The interest rate is fixed for the length of the term. Use our loan calculator to the right to see how many people your investment will assist.
Loan Stock applicants must be at least 16 years of age. (see 1. of Loan Stock Terms and Conditions when you have accessed our Loan Stock Application form).
In principle you can be a resident anywhere in the world to invest in Green Pastures Loan Stock, you do not need to be British. You will need, however, to check your local investment regulations and tax requirements to check that you are allowed to invest overseas.
Green Pastures issues unsecured Loan Stock. Unsecured means that your money is not secured against any property (in the way that a mortgage is). Loan stock subscriptions are unsecured because securing properties against loan stock would interfere with CBS’ ability to obtain mortgages and bank finance. Furthermore, refinancing property every time investments matured would be impractical. Loan Stock is a vital ingredient in funding the expansion of CBS because we can obtain only about 65% of the cost of a property by way of bank loans. Without the loan stock the operation would stagnate, and we are always so grateful for the support that is received via the Loan Stock.
The minimum term is 1 year and maximum term is 30 years. Investing for a longer term assists Green Pastures in our financial planning and our ability to access funds from other sources (bank loans & mortgages).
Minimum: £1,000. No maximum investment. To date, the most we have received from a single investor is more than £400,000.
Loans Received £
No of Investors