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Direct loans

By providing financial support to Collegium Academicum, you support a self-managed housing project, creative young people and self-determined learning and living in Heidelberg. This will be more than a home for over 200 young people. We are creating a meeting space, an inspiring environment to unlock potentials, a place for chasing dreams and grow together as a community through doing concrete projects and living together.

Your direct loan helps to empower young people and enables them to experience that they are able to make a difference and change their environment.

You also support an innovative building project that not only sets an example in terms of sustainability through its wooden construction, but also contributes to a lively local community in the Heidelberg district Rohrbach.

Your help is welcome! Please take a look at our webpages and do not hesitate to contact us if you have any questions.

Current status

We have managed to raise € 2,000,000 EUR (09 November 2019) in direct loans to fund the New House! Thank you!! We are grateful to everyone whose financial contribution has helped us and is still helping to realize this project.

You can still support the CA with your direct loans. We already had to finance some costs for the old buildings in advance, and your support is still something we must rely on. Besides, the higher the share of the direct loans in proportion to the bank loans, the more room there is for affordable rent and bigger chances for success of our project.

That is why we would be very glad about further support! Here you can read why we need direct loans and how they work.

Why do we need direct loans?

Direct loans are a key part of the funding and the most important precondition for it to work. Why? Because direct loans form the basis for our two other financing sources, government grants and bank loans. Direct loans finance our planning, so that we can make use of the approved grants, and they form our equity substitution to enable us to get future bank loans. Direct loans are granted directly to us, without any bank participating in the process. You will conclude a contract with our Collegium Academicum GmbH, where it is stipulated when and how the money lent will be repaid. Your direct loan makes it possible to realise our project and to secure affordable rents in the long term.

With a direct loan you have the chance to invest your money into a social, meaningful and ecological way.

What are the options to make a direct loan?

Immediate direct loan

Immediate loans are available to us directly. Immediate direct loans enable us to finance important external planning services and to obtain permits. This source of initial financing is critical for the success of our project. Immediate direct loans are what makes our project possible in the first place.

Trust direct loan

_At the moment this option is not available._

What are the conditions for loans?

We are glad to obtain loans starting at € 1,000 Euro (for students starting at € 500). An interest rate between 0% and 1.50% will be agreed in the credit contract. The minimum term of the loan is two years, and after this period the loan contract can be terminated with six months' notice.

How safe is a direct loan?

It is true that we cannot guarantee the same kind of security as a bank loan. In the case of serious financial constraints, it is possible that direct loans cannot be repaid, if the project would become insolvent otherwise. In such case we will have to find alternate funding first, before we can repay the loans. In the extreme case of an insolvency, the first creditors to be repaid are creditors such as banks. This means that in the worst case you might lose the totality of your invested capital.

What are the tax implications to consider?

Unlike banks, we may not deduct capital gains tax and forward it directly to the tax office. Therefore, it is your responsibility to declare income from direct loans in your income tax declaration. For this purpose we can issue a written confirmation on the interest revenues.

What are the legal regulations?

By obtaining direct loans (subordinated loans) the CA is subjected to the rules of the German Asset Investment Act. In accordance with these rules, the supporting organisation (GmbH) offers multiple asset investments with different interest rates. Within one single asset investment, no more than a total of € 100,000 or a maximum of 20 direct loans will be accepted within 12 months. Therefore, we have no obligation to draw up a prospectus according to the German Asset Investment Act (statutory minimum limit).

Where can I find further information about direct loans?

  • Write us an e-mail:
    direktkredit@collegiumacademicum.de
  • Write us a letter:
    Collegium Academicum GmbH
    Plöck 93
    69117 Heidelberg
  • Just call us:
    06221-652236

    We hope you understand that we may not always be available – please try again later!