Oportun, a community financial institution, announced a partnership with MetaBank, N.A., a South Dakota-based national bank, to make affordable personal loans capped at a 36% APR to consumers across the country, according to a press release.
With expectations to launch in mid-2021, the partnership will offer personal loans designed for low- and moderate-income individuals with limited or no credit history, creating more opportunities for financial access for them.
Oportun’s customers generally earn $47,000 per year, on average, and many are supporting a family on this income. Using a proprietary scoring and risk model, backed by machine learning and almost 15 years of data, Oportun has been able to provide affordable loans to the low- and moderate-income market that previously has been excluded or not well served by mainstream financial institutions. By reporting to the major credit bureaus, Oportun helps its customers build a credit history.
“Oportun believes that responsible financial services are essential to social and economic equity, and affordable credit is often the first step for LMI individuals who are working towards building a better future,” Raul Vazquez, CEO of Oportun said in the release. “We chose to partner with MetaBank because they share our belief in the need for responsible financial services to be made more available in LMI communities.”