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Foundation Calls for Proposals from Leagues & Foundations to Start Non-Prime Auto Loan Programs
Monday, January 30, 2017 6:50 AM

Auto Loans

The National Credit Union Foundation is looking for state leagues or foundations to submit proposals to receive support and assistance in starting their own non-prime auto loan program.

The Foundation is looking to fund and provide technical support to assist up to 5 state leagues or foundations in starting their own non-prime auto loan program. The Foundation will be granting $20,000 to each successful applicant, who will recruit ten or more credit unions capable of generating a combined 10,000 of low-score auto loans within an 18-month period during the length of the program. The deadline for leagues and state foundations to submit their applications is Feb. 15, 2017.

Click Here for the Request for Proposals (RFP) Document (pdf)

“We have already seen great success with non-prime auto lending through our pilot program and are now looking to grow that impact,” said Gigi Hyland, Executive Director of the Foundation. “Through these auto-loan loan programs, credit unions can add to their bottom lines, while also filling the social need of helping consumers improve their health and well-being through affordable credit for used cars. With the help of these grants, leagues and foundations will serve as a catalyst for change in low-score lending across the credit union movement.”

It is estimated that families can increase their income by as much as 25 percent with access to reliable transportation. With 88 percent of Americans driving to work, there is a need and an opportunity for leagues, foundations and credit unions with regards to this type of lending.

Non-prime refers to the practice of making loans to borrowers with weak or no credit histories or limited payment capacity. Low score loans are defined as loans to borrowers with a credit score of less than average or 640. Research shows there is a tremendous opportunity for credit unions to reach out to this market that has been disserved by predatory lenders and under-served by traditional lenders.

Aside from grants for Biz Kid$ financial education projects and CFSI consumer health check-ups, these will be the only Foundation grants distributed to credit unions, leagues and foundations in 2017.

About the National Credit Union Foundation (ncuf.coop):
The National Credit Union Foundation is the charitable arm of the U.S. credit union movement and works as a catalyst to improve people’s financial lives through credit unions. Through Foundation grants and programs, credit unions provide widespread financial education, create greater access to affordable financial services, and empower more consumers to save, build assets, and own homes. Donations to the Foundation enable credit unions to help their members reach life-changing goals and achieve financial freedom.