Low Interest Loans

for the Low Income

The Society of St. Vincent de PaulBelleville, Illinois Council

Pat Hogrebe, R.N., M.A. Executive Director

LILLI Program: Low Interest Loans for Low IncomeThe Society of St. Vincent de Paul, Belleville, Illinois Council

How much interest is paid in 12 months on

a loan of $300 at 650% interest rate?

LILLI Program: Low Interest Loans for Low IncomeThe Society of St. Vincent de Paul, Belleville, Illinois Council

Total Interest Paid: $1,659 in 12 months on a $300 loan

http://www.bretwhissel.net/cgi-bin/amortize

LILLI Program: Low Interest Loans for Low IncomeThe Society of St. Vincent de Paul, Belleville, Illinois Council

The interest paid in 12 months on a loan

of $300 at 4% interest rate is $6.48.

Monthly payment $25.54

LILLI Program: Low Interest Loans for Low IncomeThe Society of St. Vincent de Paul, Belleville, Illinois Council

So which loan would you choose?

Loan One

$300

Repayment $1,959

Loan Two

$300

Repayment $306.48

LILLI Program: Low Interest Loans for Low IncomeThe Society of St. Vincent de Paul, Belleville, Illinois Council

LILLI Program: Low Interest Loans for Low IncomeThe Society of St. Vincent de Paul, Belleville, Illinois Council

LILLI: Low Interest Loans for the Low Income

LILLI Program: Low Interest Loans for Low IncomeThe Society of St. Vincent de Paul, Belleville, Illinois Council

History

• The Society of St. Vincent de Paul Voice of the Poor Committee

• Start a credit union loan program for the working poor to help meet unexpected and critical expenses such as for car repair, home repair, medical & dental expenses.

LILLI: Low Interest Loans for the Low Income

LILLI Program: Low Interest Loans for Low IncomeThe Society of St. Vincent de Paul, Belleville, Illinois Council

• Loans are not made for rental or utility assistance.

• Small loans ($300 maximum plus $25 for savings account) to the needy.

• Nurture responsibility to the individual.• Avoid the high usury rates of title and pay

day loan facilities.

Catholic Community Credit Union (CCCU)

LILLI Program: Low Interest Loans for Low IncomeThe Society of St. Vincent de Paul, Belleville, Illinois Council

• The Society of St. Vincent de Paul deposits funds in an account at the CCCU.

• These funds are the security against the loans we authorize the CCCU to extend.

• St. Vincent de Paul screens applicants, then authorizes the CCCU to lend a stated amount.

Partnership with

Catholic Community Credit Union (CCCU)

LILLI Program: Low Interest Loans for Low IncomeThe Society of St. Vincent de Paul, Belleville, Illinois Council

• Applicant completes a short application at the CCCU.

• Applicant opens an account to become a member of the CCCU.

• Repayment schedule is explained to the applicant.

• Interest payment is 4% of loan.

Partnership with

Catholic Community Credit Union (CCCU)

LILLI Program: Low Interest Loans for Low IncomeThe Society of St. Vincent de Paul, Belleville, Illinois Council

• CCCU keeps St. Vincent de Paul informed of the loan repayment process or loan delinquencies.

• Credit union member may cash a payroll check without being charged a fee.

• Applicant agrees to attend a budgeting class by SVDP.

Catholic Community Credit Union (CCCU)

LILLI Program: Low Interest Loans for Low IncomeThe Society of St. Vincent de Paul, Belleville, Illinois Council

Check for loan amount is issued directly for the purpose intended.

Check NEVER issued to borrower.

Loan application process

LILLI Program: Low Interest Loans for Low IncomeThe Society of St. Vincent de Paul, Belleville, Illinois Council

•Prospective applicant contacts the Belleville SVDP office to make a preliminary loan request.

•Application form completed and returned.

•SVDP office schedules an appointment for the loan interview with applicants who meet the established criteria.

Loan application process (continued)

LILLI Program: Low Interest Loans for Low IncomeThe Society of St. Vincent de Paul, Belleville, Illinois Council

Criteria:• Passes quick financial background check• Sufficient income to make payments• Understands responsibility to repay loan• Attends budgeting class

Loan application process (continued)

LILLI Program: Low Interest Loans for Low IncomeThe Society of St. Vincent de Paul, Belleville, Illinois Council

•Two or three members of the Loan Committee are present to conduct an interview.

•Application is faxed to CCCU.•Applicant is notified within five working days regarding the status of the loan application.

Loan application process (continued)

LILLI Program: Low Interest Loans for Low IncomeThe Society of St. Vincent de Paul, Belleville, Illinois Council

• If the loan application is approved, the SVDP office schedules an appointment for applicant to complete the loan process with an officer of the bank.

•Terms of the loan will be reviewed, a payment schedule issued, and the loan agreement signed.

Approval Letter if Loan is Granted

LILLI Program: Low Interest Loans for Low IncomeThe Society of St. Vincent de Paul, Belleville, Illinois Council

Dear Congratulations on being approved for a loan with “LILLI” (Low Interest Loans for the Low Income), a program offered by Catholic and Community Credit Union and the Belleville Council of the Society of St. Vincent de Paul. We are very pleased to make this low interest loan program available to you and just want to remind you that repayment of your loan is required. This program depends upon repayment by you and others just like you who have received funds through “LILLI”. By repaying your loan, you will be ensuring that the program can continue to help others. Also, timely repayment of this debt will raise your credit score and help repair credit problems. Please do not hesitate to contact us if you have any questions. We are very happy to serve you and hope that participation in “LILLI” has had a positive impact on your life. Sincerely,

LILLI Program: Low Interest Loans for Low IncomeThe Society of St. Vincent de Paul, Belleville, Illinois Council

LILLI Program: Low Interest Loans for Low IncomeThe Society of St. Vincent de Paul, Belleville, Illinois Council

LILLI Program: Low Interest Loans for Low IncomeThe Society of St. Vincent de Paul, Belleville, Illinois Council

LILLI Program: Low Interest Loans for Low IncomeThe Society of St. Vincent de Paul, Belleville, Illinois Council

LILLI Program: Low Interest Loans for Low IncomeThe Society of St. Vincent de Paul, Belleville, Illinois Council