Why apply for a Microloan?

The mission of the Microloan program is to 1.) provide individuals with an effective alternative to high-interest pay-day loans and car title loans and 2.) to create a community where members of the Society provide individuals with financial membership and consumer protection information.

What is a Microloan?

A Miroloan is a low-cost alternative to be used for specific one-time expenses. A Microloan cannot be used to pay off normal daily expenses like such as rent or utilities. Neighbors who obtain a Microloan, and successfully repay them, will establish a good relationship with CES Credit Union, which will allow them to direct access to CES for future financial needs.

Microloans can be used for…

• Car repair

• Paying off pay-day loans, car title loans or rent-to-own contracts

• Home repair to home owners, but not to repair rental properties

• Home appliances such as refrigerators, washers, and dryers

• Medical expenses not covered by insurance or write-down by the medical establishment

• One-time educational expenses such as fees for certification exams or for specialized equipment

To qualify for a Microloan application…

• The neighbor must have a steady income, either from a job of from disability/retirement

• The neighbor must have sufficient discretionary funds to repay the Microloan

• The neighbor must be living in a home or rental unit

To apply for a Microloan…

Call the Knox County Society of Saint Vincent de Paul at
740-358-9494

Leave a message indicating you are requesting a Microloan. Specify a time when
you can be reached and at what number you can be contacted for
a brief interview concerning your request. During the pandemic, complete assessments
will be done over the phone. Normally, after the initial phone call, a home visit is conducted
to gather application information for the loan.

Following your request and phone interview…

A two-person Vincentian team will conduct a home visit to discuss the Microloan and obtain detailed financial information. The information, after collected, is forwarded to the Microloan committee for review. The committee can ask for additional information, accept the application, or turn down the request. The applicant will be notified of the committee’s decision.

The duration of the Microloan is either 12 or 15 months. The Microloan is granted through CES Credit Union. The check for the purpose of the Microloan will be written by CES Credit Union directly to the third party (i.e. the car repair shop, appliance store, etc.)

A Vincentian mentor will then be assigned to the neighbor who receives the Microloan. The neighbor agrees to work with the mentor, who will provide advice concerning financial matters and help insure that the Microloan is repaid in a timely manner.