Interested in getting a student tuition loan?
Great, we'd love to help you create a crowd-funding campaign that will allow you to participate in the student loan collective fund and get your loan. Contact us now.
What is the Collective Momentum Fund
The Collective Momentum Fund is a loan fund that grows over time from the repayments so it is able to provide loans for more and more people. The CMF fills up with money from two sources - repayments from loan beneficiaries and crowdfunding. Individual loan applicants must crowdfund a portion of their future loan. That crowdfunded money goes directly into the collective fund along with the loan repayments. As the fund grows it becomes available to more and more people in the form of additional loans. Repayments on those new loans go back into the fund...
Our concept is inspired by a German housing loan fund called the Bausparen which was started in the 1800's and still exists: bauspar-system-in-germany.pdf
How does the Collective Momentum Fund work
-the loans are zero interest
-individuals who are interested in receiving a loan from the revolving fund need to apply for the loan and sign a promissory note.
-qualified individuals will create crowdfunding campaigns where they set their fundraising goal(s).
-the final loan amount will be the crowdfunded total plus an equal amount of matching funds from the CMF. This means that someone who crowdfunds $1000 will be eligible for a $2000 loan. $1000 of this has been raised by the individual in their crowdfunding campaign. The other $1000 is provided out of the collective fund.
-funds raised by the individuals campaigns go directly into the Collective Momentum Fund.
-loans are structured in a way comparable to other consumer loans with borrowers agreeing to repayment schedules and signing promissory notes.
Which communities can profit from this model
-Students in need of tuition loans
-Renewable energy installatiosn projects
-People organizing coop housing