I agree it’s a grey area but I don’t believe everyone should have to participate in the loan IF they can provide their share of the funds up front (before the loan is applied for).
At a guess the interest rate will be 5-10% and as banks are only paying 4% at max on deposit accounts some owners could decide it’s better to us their saving than participate in a loan.
Why should these owners be denied this cost saving.
As for administrating this it shouldn’t be difficult for a competent SM to only bill those who didn’t front up with the money an extra levy per levy cycle.