The Kentucky Domestic Violence Association’s microloans are truly micro; between just $200 and $800. But they are interest-free and monitored by Experian and TransUnion, giving borrowers a chance to build their credit profile in the process.
The Kentucky Domestic Violence Association has extended interest-free microloans to 41 women throughout its 15 member organizations since 2009. The loans are pegged to savings accounts that match every dollar saved with two dollars, doubling the financial lift.
While the interest-free loan is truly micro–typically between just $200 and $800 –it can provide a crucial financial boost, enough to help a woman fleeing abuse meet the first month’s rent on an apartment or pay for transportation to a new job. At the same time it can protect her from a predatory or “payday” lender that can charge interest rates that go as high as 400 percent, taken annually.