Loan criteria

The AAF Company provides interest free and/or low interest loans to ARA and Tri-Service entities for the provision of recreational amenities or for other worthwhile purposes for Army members and their dependants.

The type of loan approved will depend on:

  • the amount of money required
  • the borrower’s capacity to service the loan
  • the effect of the loan on the Company’s finances in both the short and long term and consequently on its ability to meet its commitments to all members of the Army.

Applications for a loan should include:

  • the level of assistance required
  • the level of financial contribution by the entity
  • approaches made to other funding sources
  • an indication of the numbers of members that will benefit from the funding assistance
  • an indication of the capacity of the entity to meet loan repayments
  • copies of the entity’s financial statements.


Applicants will be assessed against the following criteria:

  1. Loans will normally made to ARA and Tri-Service entities with ‘wide’ appeal (such as those with a large participation base or for works that will result in an ongoing benefit to members).
  2. Loans to entities who, as a result of the provision of funds, will provide an improved and/or new amenity to a large participation base will be preferred.
  3. Entities demonstrating sound business practices and a proven ability to meet repayments are likely to be preferred.

Loan conditions

The loan, if approved, will be offered under the terms and conditions set by the AAF Company, including:

  • the rate and frequency of repayments
  • the interest rate to apply
  • any other condition deemed necessary by the AAF Company.

All loans will be formally documented and appropriate security must be arranged. The appropriate type of loan and the form of security required will be determined in each instance by the AAF Company when considering loan applications.


The interest rate applied to any interest-bearing loan will be determined by the AAF Company but will be below commercial rates.

Principal Plus Interest Loans

Loans approved to most income generating organisations will be repayable by instalments of principal plus interest. The AAF Company will:

  • initially designate the repayment period after careful consideration of the financial status of the entity
  • consult with the applicant to reach agreement on repayments and the repayment period.

Interest Free Loans

Interest free loans may be made available on a fixed, short-term basis for amenity purposes where it is not appropriate to require interest repayments. Loans of this type may be appropriate for bodies with low revenue producing capacity.

Messes Trust Fund

The AAF Company is also Trustee of the Messes Trust Fund. The AAF Company will provide limited financial assistance by way of interest free loans to messes of new or re-raised units. In addition, we provide grants including the return of funds held in trust in the Messes Trust Fund by the Company to units which have been re-raised.

Should a Mess be in a strong financial position, interest may be applied to any loan. 

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