Powered Wealth
The Powered Wealth lending solution is ideal for Individuals, corporate entities and trusts who are risk averse and do not require monthly interest income, but are seeking to build wealth in a compounding interest, secured lending environment.
The Powered Wealth lending solution is utilised to fund arrear levy, project and maintenance funding needs of Community Schemes.
POWERED WEALTH LENDING SOLUTION FEATURES:
Minimum amount
R1 000.00 (via debit order, for a period of 60 months)
Interest rate
Prime plus 5% per annum, compounded monthly. Interest is capped at 20.0% per annum, compounded monthly, due to industry restrictions imposed on interest chargeable to levy debtors.
Interest repayment
Interest is capitalised and repaid “as and when” the Community Scheme collects its levies.
Repayment
Loans are generally repaid “as and when” the Community Scheme collects its levies, typically within an average of five years.
Underlying legislation and security
The Sectional Titles Schemes Management Act 8 of 2011, the Sectional Titles Act 95 of 1986, and the Community Schemes Ombud Service Act 9 of 2011, including important case law.
Liquidity
Loans to Community Schemes are illiquid. The secondary market for this asset class is well established and sales can be facilitated by BC Funding Solutions to willing buyers.
Fees and charges
None, all fees and charges are paid by the debtor.