Question 1

What kind of documents do you all need for an application?

Accepted Answer

For a SDL application, we need:
- A government or state provided identification
 
- Proof of income of at least 1 month (Pay Stubs, Profit and Loss Report, etc.)
 
- Banking information that includes a voided blank check and a bank statement from the previous 60 days. A bank printout is acceptable if stamped by the financial institution.
 
- Information regarding intended use of funds from loan

Question 2

What are my chances of getting approved?

Accepted Answer

Our program is meant to be for people who are in a financial situation where they are considering seeking a pay-day loan to cover expenses. Because of that, we work with borrowers to approve a loan either now or in the near future.
 
However, there are situations where we would postpone an approval. Some scenarios might include:
When regular budgeted expenses exceed income.
The loan will not resolve the financial issue.
Loan repayment causes financial hardship.
NSF charges exceed two in a two-month period.
Inability for repayment due to insufficient income.
We will work with applicants for as long as it takes to get them approved.

Question 3

How long does the application process take?

Accepted Answer

Our loan application approval time is 3-5 business days.
 
Duration of application depends heavily on the timeliness of communication from the customer.

Question 4

How do you calculate repayment of the loan?

Accepted Answer

Repayment calculation is done in cooperation with the borrower. In general, the following calculations are used.
 
We look at a person's budget to determine an affordable re-payment plan, typically resulting in loan payoff in 12 months or less. 
Typically, we start by calculating a payment that is between 8%-10% of the loan amount. However, the final payment amount is determined cooperatively between the loan counselor and the borrower.

Question 5

How will I get the money?

Accepted Answer

Money will be direct deposited into your account.
 
In some cases, funds are disbursed via money order or certified check to creditor.

Question 6

What are the fees for this program?

Accepted Answer

There is an application fee of $50.
 
There is also a processing fee of $25.
 
The interest rate on the money borrowed is calculated at 12%, and the APR (Annual Percetage Rate) will never exceed 24%.
 
These fees help us to fund our overall operation.

Question 7

Why is my Fair Lending Services login taking me to a Habitat for Humanity of Michigan site?

Accepted Answer

Fair Lending Services is a subsidiary of Habitat for Humanity of Michigan so we use their Customer Facing Technology to schedule appointments and classes as well as communicate with customers of the Small Dollar Loan Program.

Question 8

Why do I have to take a Financial Fitness class?

Accepted Answer

The goal of our program is to help customer achieve their financial goals outside of our Small Dollar Loan Program. To help them accomplish this, we strive to expose customers to educational resources the will help them accomplish those goals.
In our work, we have found that 89% of consumers report increased financial stability following financial coaching which includes the classes in our Financial Fitness Program.
Financial Fitness classes cover a wide-variety of financial topics such as: investing, insurance, banking basics, etc.

Question 9

Is there a loan amount limit?

Accepted Answer

Yes, we have a loan limit of $1,500 per customer. 
 
However, we do review applications on a case-by-case basis.

FAQ

Frequently asked questions