Borrow & Save

Increase consumers’ economic security by providing an affordable small dollar loan with a payment term that makes sense for them. Download free and easy to use implementation resources below and get started today.

Borrow & Save Details

Established by the National Federation of Community Development Credit Unions, Borrow & Save increases consumers’ economic security by providing an affordable small dollar loan with a payment term that makes sense for them. A built-in savings component also enables consumers to self-fund emergency expenses instead of borrowing money to handle them.

Final Results

In 2014, the Federation, Filene Research Institute, and the Ford Foundation partnered to test the Borrow and Save loan within Filene’s Accessible Financial Services Incubator. The Incubator provided a way to further test, package, and deliver viable financial products designed to address the needs of the underbanked consumers. Fourteen credit unions initially entered the Incubator. 

During the incubator’s 16-month reporting period, fourteen credit unions closed 3,100 loans for over $2.9M in lending and $900,000 in savings. The average loan per borrower was $944 and the average savings was $290. Also, the average age of the borrowers was 41 years old with an average income of $33,268 and an average credit score of 523.

    Borrow and Save was selected to move into the marketplace phase of the Incubator. To learn more about subsequent efforts to broaden awareness and use of the product, visit the Accessible Financial Services Incubator page. 

    Testimonial

    “Peninsula CU was able to grant new member, James, a Borrow and Save loan in June 2014. He had good employment, but was in the beginning stages of divorce, and found himself short on cash days before payday. He came to Peninsula CU to find an alternative to a payday lender. In the time since taking out the Borrow and Save loan he has been able to save $3,000 for a down payment on a new car and add $2,000 to a savings account.  And great news . . .he financed his new vehicle with Peninsula CU.“

    Jim Morrell
    CEO

    Peninsula CU