The Black Clergy Collaborative of Memphis is partnering with Hope Credit Union to provide access to affordable financial products, services, and financial tools to low-income Memphis communities. With this funding, we want to discourage the use of high-interest payday loans and other predatory lending approaches.
BCCM and HCU have each contributed $50,000 toward the fund, for a total of $100,000 in security deposits for the program. How does it work? Through our small loan fund, applicants can ask for a low-fee, low-rate loan of $500-$1,000 with a 12-month repayment window. Part of the loan starts a savings account at Hope Credit Union; once the loan is repaid the savings and dividends earned go back to the applicant.
- Minimum Loan Amount: $500.00
- Maximum Loan Amount: $1000.00
- Annual percentage rate (APR): 6% -18%, based on credit score
- Repayment period: Up to 12 months; an automatic draft from a checking or savings account for loan payment is preferred
- Application fee: $10
- Hope Membership required (membership fee $10 and $15 share deposit required)
To apply for a loan, each applicant will need to provide the following:
- A $10 loan application fee. The application fee is not refundable and can be taken from loan proceeds.
- Documents that verify income.
Ex. Two pay stubs, Social Security award letter, Retirement income, Alimony payment, etc.
- Proof of identification.
Ex. Social Security Number, Individual Tax ID Number (ITIN), Tennessee ID
- Evidence of a Memphis or neighboring city address.
- Agree to repay the loan.
- A $10 membership and a $15 savings deposit fee. The membership fee and savings deposit can be taken from loan proceeds.
- Consent to BCCM sharing your information with Hope Credit Union.