Personal Loans

FAQs about Personal Lending CDFIs

What is a personal lending CDFI?

A personal lending CDFI is a responsible lender that provides loans to individuals who may not qualify for traditional loans due to their credit history or the small amount they need to borrow.

What can I use a personal loan from a CDFI for?

You can use a personal loan for a variety of needs, such as:

• Buying household items like a washing machine.
• Covering unexpected bills.
• Spreading the cost of a holiday or other expenses.

Are CDFIs payday lenders?

No, personal lending CDFIs are not payday lenders. They are direct lenders that prioritize fair and affordable lending practices to ensure loans are manageable for borrowers.

How do personal lending CDFIs ensure responsible lending?

CDFIs take time to:

• Check your affordability to ensure the loan is right for you.
• Offer clear terms and conditions with no hidden fees.
• Provide tools to help manage your finances, including savings products and resources to check for unclaimed benefits or grants.

Who can apply for a personal loan from a CDFI?

CDFIs often help people who may struggle to get loans elsewhere, such as:

• Those with limited or poor credit history.
• Individuals needing small loans that other lenders may not offer.

How can a CDFI loan benefit me?

By choosing a personal lending CDFI, you gain access to:

• Fair, responsible loans tailored to your circumstances.
• Support to manage your finances more effectively.
• A lending partner focused on your long-term financial well-being.