Cash advance/payday loan alternative comes to East Baltimore
Residents of low-income neighborhoods on Baltimore's east side now have an alternative to the payday loans and cash advances that charge super-high interest rates of as much as 26 percent.
As Eileen Ambrose wrote last week, the Borrow and Save Loan Program will allow residents of certain eastern Baltimore zip codes who have some source of income (from a job, unemployment, disabilty checks, etc.) to borrow anywhere from $300 to $1,000.
Those debts, subject to a 7.99 percent interest rate, will have to be paid back over one year. The program is a pilot by the Baltimore Alliance for Economic Inclusion, a partnership between several banking institutions and community groups.
However, loan recipients will also agree to ...
... participate in one-on-one counseling and financial fitness education to learn about saving, budgeting and using traditional banking institutions, according to a blog post by Neighborhood Housing Services of Baltimore Inc., one of the alliance members.
Plus, the program will allow loan recipients to start savings accounts. Each month, the program will make a $5 deposit every month that the participant saves money in the account.
Call 410-327-1200 for more information or to sign up for a loan.
Comments
The neighborhoods used to have other options. Everyone knew they cost more than the "Savings Bank of Baltimore" did but the rates and practices weren't abusive or predatory.
Case study: Examine how and why "Rose Shanis Loans" become Rose Shanis Financial Services LLC and you'll have an expose on the whole industry.
Posted by: MrRational | September 29, 2009 10:13 AM