Personal Loans

Access to high-quality small-dollar credit is a key component of a successful financial life for many people to weather a financial shock, smooth income fluctuations, build a positive credit history, or facilitate a purchase. However, millions of people in the US become victims of predatory lending, getting loans with high fees, high interest rates, and/or unfavorable terms. It’s time that we create opportunities for mass access to responsible secured and unsecured credit.

DATA AT A GLANCE

* as of Dec 31, 2019

  • $89

    million

    Total Auto Loans Outstanding

  • $10,585

    Average Loan Size

  • 8,389

    Auto Loan Borrowers

  • 618

    average

    Credit Score (of borrowers with credit scores)

  • 452

    grants

    Given for Clean Vehicles

WHY IS THIS IMPORTANT

Most borrowers who have little or poor credit history do not have access to small-dollar credit or only have access to high-cost, low-quality small-dollar credit products that too often lead them into a cycle of repeat usage and mounting debt.

This is especially true in the auto industry. When getting a car loan from a dealer,  pre-prime borrowers are often targeted with predatory practices. These practices include inflating the principal balance (original sum of money borrowed), upselling unnecessary items (insurance, warranties), and marking up interest rates.

OUR APPROACH AND IMPACT

Beneficial State Bank merged with Pan American Bank in August 2016 and welcomed a team of experts in pre-prime consumer auto lending. We are an alternative for people who have low or no credit scores and who are typically targeted by predatory lending practices. While it is challenging to compete with lenders who put their own and the car dealer’s profit above fair and transparent service to the customer, we don’t compromise on our mission to serve people and planet while still sustaining profit. 

In mid-2018, we implemented an improved underwriting model. This model takes both the customer’s credit score and contents of their file into account, allowing us to better serve pre-prime customers by offering them rates and terms that set them up for success (rather than defaults). 

Whether it’s our new approval process, loan terms, interest rates, car dealer agreements, or collections process, we are constantly striving toward improvement and greater mission alignment to help borrowers in an industry rife with predatory practices. 

To complement our auto lending, Beneficial State Foundation administers the Clean Vehicle Assistance Program in partnership with Beneficial State Bank. Launched in May 2018, the Clean Vehicle Assistance Program provides grants to help income-qualified Californians purchase a new or used clean vehicle. In 2018, the Clean Vehicle Assistance Program has awarded $782,500 in grant dollars and given over 170 grants.

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