Prosperity Indiana is the Indiana statewide coordinator for the Community Loan Center (CLC) payday-lending alternative. The CLC program allows local lenders to make online loans directly to employees of participating employers. Borrowers apply for a CLC loan online, the loan is deposited in the borrower's bank account, and borrowers then repay their loans each payday through payroll deduction. 

Each local lender raises their own loan capital, earns the interest and fee income, and pays fees to cover use of the program software, loan servicing, and collections of delinquent loans. As statewide coordinator, Prosperity Indiana is responsible for recruiting local lenders, helping engage employers, raising additional capital for lending by local CLCs, and providing capacity building to mission-based CLC lenders. Twenty-two counties in Indiana are currently served by an Indiana-based CLC lender. 

Program Details:

While payday loans are designed to trap individuals in the cycle of debt, this employer-based model meets the same short-term lending needs without applying the burdensome fees and interest associated with predatory loans. CLC loan features include:

          • Up to $1,000 loans
          • 18% interest with up to 52 weeks to repay
          • $20 per loan origination fee
          • Employees apply online anytime with fully automated system
          • No cost of risk to employers

Benefits to Employers:

    • Attractive and innovated employee benefit
    • Increases productivity, workplace moral, and employee retention
    • Reduces costs of employee financial stress
    • Reduces productivity lost from employee time spent on financial problems at work
    • Reduces costs of absenteeism - usually stress-related
    • Loan program is easy to administer
    • Access to employer portal at anytime
    • Employee may apply for loan after working hours

Benefits to Employees:

    • Inexpensive loans - $20 fee and 18% interest instead of 391%
    • Longer term of up to 12 months to repay, instead of 2 weeks
    • Low, affordable payments
    • Convenient payroll deduction
    • User-friendly application website
    • Easy approval - no credit checks and no collateral
    • Quick loan approval
    • Funds transferred directly into employee bank account
    • Loan proceeds can be used for any purpose, including to pay off payday loan debt
    • No prepayment penalty
    • Improved credit score through credit bureau reporting

Contact Jessica Love, Executive Director, at jlove@prosperityindiana.org or (317) 222-1221 x402 for more information. 

Prosperity Indiana
1099 N. Meridian Street, Suite 170
Indianapolis, IN 46204 
Phone // 317.222.1221 
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