BROCKTON, Mass.-In response to a recent hike in the cost of the U.S. citizenship test, HarborOne Credit Union introduced a new loan to help immigrants become citizens earlier this year.
The New Americans Loan Program offered an unsecured 9.9% loan to cover the $675 fee the federal government charges for the citizenship test.
SVP-Marketing Leo MacNeil said the program, which was not marketed in any way, brought in 10 applications over the course of the year. Seven were approved for $4,725 in total loans.
MacNeil said the low participation was not a sign of failure in any way as the CU was not pushing the new product at all.
"We did it because the [cost of the] citizenship test was surprisingly high," he added. "We certainly hope that it will develop over time."
Meanwhile, as Credit Union Journal reported in June 2007, HarborOne also debuted a MultiCultural Banking Center in a previously vacant branch, in part to be a think tank to develop strategies for helping the community. The center, which now offers career skill education, financial literacy courses and even a citizenship test prep program, has become wildly successful. "Since we opened, we've had more than 700 people go through courses of various types," MacNeil said.
After receiving a $100,000 grant for 2009 and being awarded the state's Dora Maxwell Award for Social Responsibility, HOCU's multicultural center is being hailed as a best practice nationwide and has paid for itself.
"We figure that we have broken even at the end of the first year," said MacNeil.
Basic skills courses such as computer literacy courses are becoming "feeders" for the financial management courses, he added, and in turn, the locals who are using these services are developing relationships with HarborOne. And, more importantly, they are bringing their deposits and other financial business to the credit union.
"It was clearly visionary, but what you are starting to see is a reaction to all of the predatory activity in the community," MacNeil said of the banking center. "As people from other countries learn the American banking system, they are able to integrate themselves into it."
Originally Reported In CU Journal: Feb. 18, 2008
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