Back

Community Bank of MS, Gulfport, MS

Entry Year: 2018
Entry Category: Economic Inclusion
Asset Size: Small
Program Name: Community Credit

Program Summary:

A program to help establish Good Credit
1. An educational effort coupled with a loan/deposit feature to help unbanked citizens build credit and get into banking services. A short term loan, that will help establish a regular savings plan as well as provide cash to pay off or down an existing loan.
2. Assist in discouraging the use of predatory lending and establish a financial relationship with a financial institution.
3. To learn the benefits of a bank relationship vs an expensive predatory lender. A financial education program taught by experts from Community Bank.
4. Reduce debt and increase savings and gain financial confidence.
A short term loan that will help one establish a savings plan as well as provide cash to pay off or down an existing loan. This low-interest loan is an alternative to expensive Pay Day Lenders, Check Cashing Services and other more expensive financial service providers.
Half of the loan proceeds will be deposited into a Community Credit Checking account, and the other half will be deposited into a savings account.
The program started with one Assessment Area in 2016. Today we have expanded the program bank wide as of March 1, 2018. Following results as of June 11, 2018:
1. 630 accounts 211 customers
2. 73% paid off
3. 49% From LMI Census Tracts
4. 70% Majority Minority CT
5. Education component valuable