MEETING SMALL-DOLLAR CREDIT NEEDS: SERVING LOW-INCOME SAVERS – VOTERS CHOICE FOR CREATE OPPORTUNITY

Designing sustainable small-dollar credit products requires identifying low-risk borrowers efficiently, with minimal underwriting. One untapped market for such products?  Low-income consumers that participate in matched savings programs, including individual development account (IDA) programs and tax-time savings initiatives.

These account holders have demonstrated their ability to budget and save; they are acquiring a capacity to repay small-dollar loans. Unable to borrow affordably because of thin credit histories, they need credit access to meet emergency expenses, protect their savings, and qualify for match funds.