Lending Companies Are starting to Target Unprivileged Groups of People
As the economy in the USA grows and strengthens, there are new financing companies emerging every day. Some of those companies are targeting less privileged groups of people and providing cause-based lending, which usually opens a whole new level of opportunities. Many people might not get their loan underwritten based on prejudice, which is in most cases based on a false premise. We, therefore, believe, that these companies have a solid chance of succeeding in the financing market. We have listed two successful examples for you:
Michigan To Open Their First LGBTQ Credit Union
An often underserved and discriminated against the community, many LGBT people have a difficult time finding financial institutions that will fairly serve them. From being denied mortgages based on sexual orientation to finding personal loans to help cover the cost of life-changing surgeries, the LGBT community often struggles to find banks willing to help.
For transgender people, it can be difficult to get approved for personal loans that will cover medical expenses, like surgery and hormone therapy. These expenses, especially surgeries, are often considered cosmetic by most insurance companies.
Superbia hopes to give more people access to personal loans that will cover these costs, without judgment. Superbia Credit Union wants to help get LGBTQ people back on solid financial footing. In order to achieve this, their services are designed to directly benefit the LGBT customers that will use them. For example, Superbia’s plan to offer high APY savings accounts could help encourage LGBT people to focus on putting money towards growing their savings.
Another great example to cause-based lending would be Raza Development fund
As the largest Community Development Financial institution with more than $400 million in total assets under management, RDF has provided capital to Latino-serving organizations nationwide.
With a national footprint, RDF is positioned to respond to the needs of underserved communities, facilitate financing to projects, and provide technical assistance that aims at breaking the cycle of poverty in low-income communities across the country.