The JAK bank is a cooperative with over 35,000 members who lend each other money with no interests. In 1970 JAK already used a system of loans and savings with no interests, but it was not until 1997 when it finally obtained its banking licence. In 2008 its volume of deposits amounted to 97 million Euros and loans amounted to 86 million Euros. Even if it is a not-for-profit entity, in order to cover the structural costs it charges an annual fee representing 2.5% of the granted loans.
However, the operations to return loans entail a compulsory saving equal to the annual fee for the loan. This saving is done by the holder of a loan, whether this is done before or during the return period, or, in the case of entities, this can be done by a group supporting the financed project. When the loan comes due, this complementary saving may be withdrawn.
JAK bank works with no interests since it considers interest rates to have a negative effect on society. This is reflected in the price of the services and products when producers add it to the price of sale to recover the expenses generated by the interests of the loan received. In an economy with interest rates, money is transferred from those with less money to those with most money meaning that assets are concentrated in the hands of just a few.
For further information visit www.jak.se