Citi Contributes to Social Lending Movement
$110,000 Received to Support Innovation in Microfinance
Citi has been a key supporter of Mission Asset Fund's innovative social lending model, Lending Circles, since day one. Originally piloted in San Francisco’s Mission district, the Lending Circles model organizes social loans within low-income communities in an effort to overcome financial exclusion. Lending Circles enables previously unbanked or underbanked individuals with no credit, bad credit or thin credit to access a legitimate, interest-free loan that opens up the doors to financial mainstream.
“With a 0% default rate, the Lending Circles model demonstrates that everyone brings something of value to the table. Without Citi's’s ongoing support, we would not have been able to service over $1,000,000 in social loans among low-income individuals. We would not have been able to build the credit scores of over 750 low-income participants," says Jose Quinonez, MAF's Executive Director.
Support the Financial Facts Label Act
for easy-to-comprehend loan disclosure information
If you are thinking about getting a loan of $1,000, you want to know how much it costs, right? Like the labels on your cereal box, the Financial Facts Label will give consumers the straight facts so that they can decide if they can afford a loan…or not.
Support the Financial Facts Label Act of 2012 – Sign the letter today!
The Nutritional Facts label has changed the way we live. Every day, it helps us make informed choices about what and how much we eat. Without it, we would be left with a lengthy list of ingredients and no frame of reference for calorie, fat or protein content.
Support Financial Facts Label Act
Support the Financial Facts Label
for easy-to-comprehend loan disclosure information
If you are thinking about getting a loan of $1,000, you want to know how much it costs, right? Like the labels on your cereal box, the Financial Facts Label will give consumers the straight facts so that they can decide if they can afford a loan…or not.
Support the Financial Facts Label Act of 2012 – Sign the letter today!
The Nutritional Facts label has changed the way we live. Every day, it helps us make informed choices about what and how much we eat. Without it, we would be left with a lengthy list of ingredients and no frame of reference for calorie, fat or protein content.
Loan documents are confusing. And when it comes to lending and borrowing, consumers across California are left with nothing but a long list of ingredients – APRs, principal, interest, origination fees, late fees, terms, conditions, and penalties. When consumers borrow $1,000, they don’t have the benefits of a standardized label that clearly shows the key features of their loan. To find out how much it will cost in interest or with fees, they must sift through loan terms written in complicated legal language.
With your help, we can change this. The Financial Facts Label will equip consumers with easy-to-comprehend information to chart their own financial future.
Credit Deserts: The Absence of Low-Cost Credit in Low-Income Communities
A Special MAF Report
In the wake of the recent recession, a growing debt crisis is facing low-income families. Supported by promising results from a pilot research project, this report calls for better consumer disclosure on small dollar loans. Mission Asset Fund’s Financial Facts label is a first step toward protecting individuals from a cycle of poverty and high-cost debt.
Without a credit history, a person is invisible to the mainstream U.S. financial system. As “unattractive” borrowers, low-income consumers turn to alternative lenders, often settling for loans with high costs and predatory terms. This report presents MAF's Financial Facts label as a model for communicating loan terms in a clear, transparent, and recognizable format.
