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Insurance Corporation

Each depositor insured to at least $250,000 per insured bank

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Inactive Financial Institution Letters

Affordable Small-Dollar Loan Products
Final Guidelines
June 19, 2007

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

Related Topics:

Affordable Small-Dollar Loan Guidelines

Robert Mooney, Acting Deputy Director, Compliance & Consumer Protection, at (202) 898-3911 or;
April Breslaw, Acting Associate Director, Compliance Policy & Examination Support Branch, at (202) 898-6609 or;
Mira Marshall, Acting Chief, CRA/Fair Lending Section, at (202) 898-3912 or;
or Carol Rosa, Policy Analyst, at
(202) 898-8515 or

Printable Format:
FIL-50-2007 - PDF (PDF Help)

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 6/19/2007

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