Financial Empowerment

In countries all of 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.

Do I qualify?

To qualify, participants should:

• Have an active email and checking account
• Have a valid government issued ID, and Social Security Number or ITIN (Individual Tax Identification Number)
• Demonstrate an ability to afford the loan by providing two months of pay stubs and three months of recent bank statements

How to apply

Contact our Financial Empowerment Lending Support Specialist, at 650.403.4300 ext 4105 or by email.

Upcoming Information Sessions

Peninsula Family Service is able to offer Lending Circles thanks to a partnership with Mission Asset Fund (MAF). As founders of this innovative program, MAF collaborates with select nonprofit partners to create credit-building opportunities across the country.

For both Santa Clara and San Mateo County inquiries, contact our Financial Empowerment Lending Support Specialist, at 650.403.4300 ext 4105 or by email.

Without a bank account, families pay a premium to use check cashing services, losing their hard-earned income to these high service fee providers. What’s preventing them from joining the financial mainstream?  Often lacking financial role models of their own, unbanked individuals can find banks intimidating, may be unable to meet minimum balances, and worry about overdraft fees or fines.

In collaboration with Community Financial Resources, we offer a VISA prepaid debit card to give participants immediate access to funds with no monthly fees. By using direct deposit, paychecks can automatically be loaded onto the debit card, eliminating the need for costly check cashing. Funds are not only more accessible, but more easily tracked, helping families keep an eye on spending and develop better financial habits.

How it works

Our VISA prepaid debit card can be used wherever VISA is accepted. Unlike a credit card, you are spending your own money instead of borrowing from a bank. Via direct deposit, participants can load the card with their paycheck, benefits such as Social Security, and even tax refunds. That money is immediately available with no fees or waiting in line to cash a check. Using a debit card instead of cash creates an online transaction history to help participants track expenses and keep spending in line.

Do I qualify?

To qualify, participants should have a Social Security Number.

How to apply

For both Santa Clara and San Mateo County inquiries, contact our Financial Empowerment Lending Support Specialist, at 650.403.4300 ext 4105 or by email.

We are able to offer our VISA prepaid debit program thanks to a partnership with Community Financial Resources (CFR). As founders of this innovative program, CFR collaborates with select community-based organizations to encourage beneficial money-management behaviors among low to moderate-income households.

We offer no-cost Financial Education Workshops, each three-hour workshop covers the important topics of budgeting, money management, ways to build credit, and the benefits of using credit. To register please contact our Lending Support Specialist, at 650.403.4300 ext. 4105 or by email at finemp@peninsulafamilyservice.org.