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Small Dollar Consumer Loans: Nonprofit Lenders Making a Difference

In the last several years, a number of nonprofit, non-depository lenders, including Community Development Financial Institutions, Community Action Programs, United Ways, and others have begun to define and deliver small-dollar loans (SDLs) as a responsible alternative to payday loans.

In 2012 CBA identified and surveyed over 100 such lenders, almost half of whom responded. Ten were also interviewed for more in-depth information. This paper explores some of the real and perceived opportunities, barriers and common issues nonprofit lenders face in offering (or considering) SDLs as they strive to achieve improved efficiency, risk management and scale in this space.

Read our paper, published in 2013, on how nonprofit lenders are making a difference.

More Resources on small dollar credit:

CFSI Reports

Know Your Borrower

Compass Guide to Small-Dollar Credit

The Pew Charitable Trust

Safe Small-Dollar Loans Research Project