Freedom First Federal Credit Union is honored to be selected by the Federation to launch the Borrow and Save product. Borrow and Save aligns directly with the goals we set for the credit union when we initially created our Impact Banking suite of products and services, and it has proven to be an important option for many of our members. Geared toward low-income and credit-challenged households, Impact Banking directly addresses the financial education, credit building and positive saving and spending habits many of our members require.
Freedom First is sometimes unable to fulfill the requests of individuals who come to our branches requesting loans for their immediate needs. When credit challenges or income limitations present barriers to traditional loan products, Borrow and Save provides an alternative starting point, enabling the member to take steps toward financial self-sufficiency. Borrow and Save reduces the loan amount and introduces the concept of saving for future needs; the goal is to provide a structure and schedule that encourages future saving habits. Borrow and Save is successful when the member continues to channel his loan payment amount directly into savings after the Borrow and Save repayment period has ended.
Borrow and Save has become one of Freedom First’s most successful Impact Banking products. We have found that borrowers who are not initially in a position to take advantage of larger Impact Banking loan programs–such as Responsible Rides or Affordable Housing–are able to build their savings through Borrow and Save; they can then contribute to the down payment required for a vehicle or home purchase.
Continuing our partnership with the Federation and becoming involved in the Filene Incubator project will enable Freedom First to propel Borrow and Save further, thereby better assisting our members.
Written by Dave Prosser, Freedom First FCU
Click here to learn more about Borrow and Save.