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Highlights:
- 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.
Distribution:
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:
Attachment:
Affordable Small-Dollar Loan Guidelines
Contacts:
Robert Mooney, Acting Deputy Director, Compliance & Consumer Protection, at (202) 898-3911 or
RMooney@fdic.gov;
April Breslaw, Acting Associate
Director, Compliance Policy & Examination Support Branch,
at (202) 898-6609 or APBreslaw@fdic.gov;
Mira
Marshall,
Acting Chief, CRA/Fair Lending Section, at (202) 898-3912
or MMarshall@fdic.gov;
or Carol Rosa, Policy Analyst,
at
(202) 898-8515 or CRosa@fdic.gov
Printable Format:
FIL-50-2007 - PDF (PDF Help)
Note:
FDIC financial institution letters (FILs) may be accessed
from the FDIC's Web site at
www.fdic.gov/news/news/financial/2007/index.html.
To receive FILs electronically, visit
http://www.fdic.gov/about/subscriptions/fil.html.
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).
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