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JAK - An Interest-free Bank Owned by its Members
Stenius, E.
Publication Date: 2003
Document Type: Presentation
Cooperative banking innovations in Sweden
This paper presents the principles of the JAK member bank, Sweden. Founded as an association of farmers in the year 1965, JAK received its banking license in 1997. As on November 2003, the total sum of deposits with the bank was SKR 680 millon ($85 million).
The guiding philosophy of JAK is:
- No expectation of interest while lending,
- Provision of getting interest free loan when needed.
The bank aims to:
- Support economic emancipation of members by making interest free credits available.
- Advocate against the ill effects of usurious interest on society and environment.
- Create a sustainable world economy with fair and just rules for everyone.
The bank does not charge any interest from its members but collects technical charges for processing loans. It does not pay interest on savings of members either, but allocates points for saving. The members can get loans on the basis of these accumulated points. While the bank gives small loans without any security, it asks for collateral for bigger loans.
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