We were proudly featured in Next City’s The Bottom Line, a series exploring scalable solutions for problems related to affordability, inclusive economic growth and access to capital. In the article, Investing in a More Equitable Post-Pandemic Banking System, senior economics correspondent Oscar Perry Abello details the Treasury's new investment in 186 community development and minority financial institutions and what it means for the 160+ municipalities around the country.
“In the Morrisania section of the Bronx, New Covenant Dominion Federal Credit Union has seen steady growth in its loan portfolio since the pandemic began.
It’s tiny, even by credit union standards, with just $1.4 million in assets. But in September 2021, in its most recent report to federal regulators, the credit union had 213 loans on its books, adding up to more than $1 million — nearly double the number of loans (129) and value ($535,000) in March 2020.
Most of those loans are unsecured lines of credit — for members who have at least two years of account history with no bounced checks or payments, New Covenant Dominion offers an unsecured line of credit up to $5,000. “Unsecured” means no collateral required. The average interest rate on those lines of credit is 11% — a few points below New York’s statewide 16% interest rate cap. These are the kinds of loans that often serve as alternatives to payday loans, or otherwise can be helpful in an emergency like suddenly losing a job during a global pandemic.”
Read the full article directly on Next City.
At New Covenant Dominion Credit Union, we offer loan products built to fit a variety of financial needs. Whether you’re looking to build credit, purchase a car, or consolidate debt, we’re here to help. Call us at (718) 328-3930 to learn more!Learn more about how NCD CU can help