Making a loan to Hermes

The Moray Steiner School borrowed
from Hermes Trust in order to carry
out internal building works on their
fine 19th century mansion in Forres,
close to the Moray Firth

Money lent to The Trust forms part of our revolving loan fund, and is thereby used again and again by projects until you require repayment.

Hermes pays interest of 3% per annum on loans made into the Trust. We ask that such loans be in multiples of £1,000, and that they be placed for a minimum of 3 years as it is difficult to make good use of the money over a shorter period than this.

Concerning what level of risk attaches to any loan made to Hermes, the following should be noted: Of a loan fund of about £1.25m, over £750,000 is Hermes Trust's own capital. So if Hermes were to experience any bad debt, this would reduce the Trust's own capital in the first instance and not your loan. In addition, nearly all of the loans we make benefit from formal security (usually land and buildings, or personal guarantees), so bad debts even affecting the Trust's own capital are very rare. Naturally, all borrowers are subject to a thorough financial assessment by Hermes before any loan is agreed.

If you would like to make a loan into The Trust, please contact us leaving the following information, and, provided we are in need of money for the loan fund, we will send you a formal loan agreement to complete and return with your cheque:

  1. Name.
  2. Address.
  3. Amount you would like to lend.
  4. Whether you would like to receive interest of 3% or no interest.
  5. Length of time you wish to make the loan for.
  6. Whether, after this time has elapsed, you would like repayment immediately or prefer that the loan be repayable only after a notice period, such as one or three months.

Your support is greatly appreciated.