Micro Credit Makes Way For Personal Loans for People with Bad Credit

personal loans for people with bad creditThe leading payday lenders are facing a tough time due to the fast emerging microcredit facilities. There are many lenders whose business is facing loss due to the easy loan facility provided by the microcredit lending organizations. The poorest state Mississippi in the United States of America has the maximum population of personal loans for people with bad credit lenders as compared to other states in the nation.

It is ironical that people in Mississippi have least access to banking facilities as compared to other states. A new initiative to provide small dollar loans to Mississippi residents has been started by the Mississippi center for Justice and the regional banks. The initiative also includes providing free financial education and guidance for financial planning to the State’s residents. Borrowers could also learn positive ways to build credit history and have a good financial portfolio for investment.

The program is named New Roots Credit Partnership and it has collaborated mainly with community banks which are open to offering cost free financial literacy programs. The small dollar programs and micro credit facilities have completely transformed the lending scenario in American states. These programs are offering small loans as low as $50 to small scale entrepreneurs to help them run their wheel of fortune with confidence.

Long back in the year 2006, the Grameen Bank in Bangladesh was honored with the Nobel Peace Prize for practicing micro lending with ethical conviction. ‘It is great to see that participants are receiving micro credit along with free financial education’- said Charles Lee, the director of consumer protection at the Mississippi Centre for Justice.

In this arrangement, banks get new customers easily and the number of loan applications come down for bank employers with some added benefits for the bank employees. In such arrangement, there are both, short term as well as long term benefits involved for the bank employees. They benefit in the short term with loans approved and in long run, start new free savings account and provide financial literacy to their customers retaining their loyalty.

A bus driver named Shawana Pierce said that she was deeply indebted after borrowing a payday loan to overcome an outstanding bill payment. After the free guidance and information received via this micro credit awareness program, she has become more intelligent about borrowing money. She is now managing her expenses and bill payments tactfully which were earlier paid by either in cash or through a money order.

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