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FAQs on Direct Lending

What are direct loans?

Direct loans are funds that are made available to the UmStieg housing and education project by private individuals or groups. A loan agreement is concluded between the lenders and UmStieg Haus GmbH. This gives the donors the opportunity to make a transparent, social and sustainable investment that supports a politically, ecologically and socially committed house project.

Low-interest direct loans are the key for the UmStieg housing project in order to ensure rents will be kept at a low level.

What do you get out of it as a lender?

We offer the certainty that your money serves a social purpose: We ensure permanent affordable housing and counteract real estate speculation. We enable long-term and social investment, where you always know where your money is and what is happening with it. Private enrichment through profits or speculation is excluded by the charter and control of the apartment building syndicate.

Direct loans for projects in the Apartment Buildings Syndicate are a form of solidarity investment. From a purely economic point of view, other investments may be more effective. 

What does the prospectus exemption mean?

From January 1st, 2016, subordinated loans, including our direct loans, are subject to the Investment Act. Since we will not raise more than €100,000 in direct credit per offer per year, this will not change much for our project. There is no prospectus requirement according to the Asset Investment Act.

What does subordinated loan mean?

In the event of insolvency of the project, we are obliged to first serve other non-subordinated creditors, such as banks, and only then will the direct lenders be paid out.

Is there interest on direct loans?

The social character of the project is guaranteed by low interest rates. Low interest rates guarantee permanently low rents and enable us to repay bank loans more quickly. Regardless of the amount and term, you can grant your direct loan either interest-free or with a fixed interest rate of up to 1.5%, depending on the offer.

You can decide whether you want the interest to be paid out annually or at the end of the term. At the end of each calendar year, you will receive a notification about the account balance and, if applicable, about interest income.

How high should the direct loans be?

Direct credits can be made available from an amount of € 500. Lower amounts are unfavorable because of the administrative burden. In addition to one-off credit payments, you can also arrange partial payments with us.

What is the term or notice period of the loan agreement?

Direct loans can be concluded for a limited period of at least one year or for an indefinite period. Loans with long maturities are preferred because they ensure a high level of security for planning and reduce our administrative costs. This is particularly important for large loans. Fixed-term direct loans end automatically after the agreed time. There are different notice periods for permanent loans, depending on the amount of the loan.

We ask you to comply with the agreed terms and notice periods so that we can plan with certainty. For us, fair treatment also means that we make every effort to enable your money will be repaid early if necessary.

Who is responsible for filing the capital gains tax return?

Unlike banks, we are not entitled to withhold and pay capital gains tax. This means that you are responsible for reporting income from direct loans in your income tax return. A certificate of interest income is issued for this purpose.

What makes us trustworthy partners?

Established and Reliable community


The house project UmStieg strives for the participation of Apartment buildings syndicate. For more than twenty years, economically and socially functioning projects supported by many people have existed under this umbrella throughout Germany.

Solid financial planning


Our financing plan was drawn up in close cooperation with consultants from the Mietshäuser Syndikat and the GLS Bank. Our calculation is solid and based on the economic earning power of the house project and the educational establishment. Stable rental income and economic activities in our project serve the loans.

Local and transparent investment


You can see where your money is and what is happening with it at any time. You will receive regular information about the development of the project. In this way, the use of your investment remains transparent.

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