Lending Circles

In countries all over the world, informal lending circles bring community members together to lend and borrow money. From the tandas and cundinas of Mexico to the hui of Asia, nearly every culture has a system for peer-to-peer lending.

In partnership with Mission Asset Fund, we offer Lending Circles, an innovative program that turns this decades-old tradition into a credit-building opportunity by reporting monthly loan payments to all three credit bureaus. With the opportunity to build or improve your credit, you gain access to more affordable loans, join the financial mainstream, and build up your emergency savings.

How it works
After applying online, participants attend an online or in-person financial education workshop to become more financially savvy and maximize the program’s impact. Then, six to twelve participants come together to form a Lending Circle and decide on a loan amount ($300 to $2400).

When the Lending Circle begins, each participant makes the same monthly payment ($50 to $200), which our partner, Mission Asset Fund, reports to the three credit bureaus (Equifax®, Experian® and TransUnion®). The loan recipient rotates every month until the entire Circle has received their loan. For example, 10 participants can form a Circle and agree to each contribute $50 a month, meaning a 10 month loan term for a total loan amount of $500.