Courtesy of Catholiccharitiesusa.org
Just in 2016, a group of people from the community of St. Vincent de Paul Diocese of Columbus decided to focus on creating a completely new way of helping out people in need. Even a small expense can easily push you off the track and even ruin your life if there is no reserve. The idea of a loan administrated by people of faith and provided to those who require a small financial aid right here and right now was conceived after long discussions and years of planning.
Catholic Payday Loan Details
The first experience was more than successful and 5 other counties decided to pick up on it. The plan is to expand even more and provide help in all 23 counties at some point in the nearest future. If everything goes according to the plan, thousands of people will have a place to go when they direly need money.
There are several key features of this microloan that should be noticed:
- The borrower may receive up to $500;
- Very low interest rates;
- The borrower may take a loan for up to 15 months.
Credit history is mostly ignored.
Compared to some interest rates that may be as high as 500% annually in some states (Ohio is one of examples), these conditions seem to be more than simply attractive for the vast majority of borrowers. If you are in a desperate situation and require help, you can easily apply for a loan and return it gradually. Payments will be structured in a way most comfortable for the payer.
One of key moments here is that your credit history improves as you pay back to the community meaning that some people could use this service to improve their chances of getting a bigger credit eventually in case such a necessity occurs. One of goals is to allow people to improve their relationships with various lenders and banks.
This community administrated operation is a great way of reducing the burden of interest rates for those who simply cannot afford to pay them. There are thousands of people in America whose financial situation is astonishingly fragile. Paying even a single extra cent could mean trouble in their scenarios.
The core idea behind this new service is to reduce poverty and introduce new effective ways to deliver money to those struggling to make ends meet. Driven by kind people and faithful enthusiasts, this service starts gaining momentum and sparks excitement in many regions of the US.
The Future of Catholic Payday Loans
The tomorrow does seem brighter for this idea. It has a robust structure supported by the community which assumes all risks related to each loan allowing the borrower to breath freer. Simultaneously, people do not have that gnawing feeling that they are being robbed by powerful banks and other financial institutions. Everything happens within a much smaller community interested in helping you out.
Scores of people face difficult times that do not allow them to fulfil even the tiniest of goals like changing tires on a car or fixing broken windows. This new alternative to standard payday lenders who are preying on weak is something that every county in the country should have. Hopefully, the day when this will be available everywhere will come soon.
