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Financial Institution Letter
Affordable Small-Dollar Loan Products Final Guidelines
Summary: The Federal Deposit Insurance Corporation (FDIC) has issued the attached "Affordable Small-Dollar Loan Guidelines" that encourage financial institutions to offer small-dollar credit products and to promote these products to their customers. The products should be affordable, yet safe and sound, and consistent with all applicable federal and state laws.



  • Small-dollar loans are in strong demand. The goal of a small-dollar loan program is to enable insured institutions to better serve an underserved and potentially profitable market, while helping consumers avoid, or transition away from, reliance on high-cost debt.
  • The guidelines encourage insured institutions to offer small-dollar loan products that have affordable, reasonable interest rates with no or low fees and payments that reduce the principal balance of the loan.
  • As part of their programs, institutions may consider offering financial education and a savings component in order for borrowers to reduce their reliance on high-cost, short-term credit.
  • During a Community Reinvestment Act (CRA) examination, FDIC examiners may favorably consider small-dollar loan programs when evaluating the lending performance of small, intermediate-small, and large institutions. A small-dollar loan program may be viewed as uniquely responsive in helping to meet the credit needs of a community.


FDIC-Supervised Banks (Commercial and Savings)

Suggested Routing: 
Chief Executive Officer 
Chief Loan Officer 
Chief Compliance Officer 
CRA Officer 
Chief Information Technology Officer


FDIC financial institution letters (FILs) may be accessed from the FDIC's Web site at .

To receive FILs electronically, visit .

Paper copies of FDIC financial institution letters may be obtained via the FDIC's Public Information Center (1-877- 275-3342 or 703-562-2200).



Last Updated: June 19, 2007