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Why Oportun is providing $1MM in low-interest loan funds to support the work of other CDFIs
By Raul Vazquez, CEO
As a CDFI, Oportun is dedicated to providing inclusive, affordable financial services that empower its customers to build a better future. By lending money to hardworking, low-to-moderate income individuals, many of whom lack credit history, we help them move forward with their lives, demonstrate their creditworthiness, and establish the credit history they need to open the door to new opportunities.
We are proud of the positive impact we have had so far. Since 2006, Oportun has disbursed more than $5.4 billion through more than 2.6 million loans to over 1.2 million customers. We have also helped over 600,000 customers who came to us without a FICO score start establishing a credit history. At the same time, we have saved our customers an estimated $1.2 billion in aggregate interest and fees compared to the widely-available alternatives that people with limited credit history typically turn to, such as payday and pawn loans. These alternatives typically cost four times more than an Oportun loan but can be up to seven times more expensive.
We are committed to making a positive difference in the low-to-moderate income communities we serve and have long admired the work of other CDFIs, who are able to help individuals and families in ways that are distinct from the work that we do at Oportun. As a CDFI, we also have dealt with and know the challenges that many CDFIs face in accessing the affordable capital they need to fuel their programs and loans. That is why we have decided to provide one million dollars in low-interest loan funds to the Opportunity Finance Network (OFN) to support the work of CDFIs in the communities we serve.
We are eager to support CDFIs who share our belief in the importance of improving economic conditions in low-to-moderate income communities so that individuals and families can access wealth-building opportunities and build a better future. It is our hope that this one million dollar low-interest loan to OFN will amplify the positive social impact of our own work and the work of CDFIs in the communities we serve. This is our way of giving back to OFN and the CDFI community that has inspired so much of our work. Thank you.