Can social lending programs help consumers build credit scores and transition to the financial mainstream?

Mission Asset Fund’s (MAF) Lending Circles provides a zero-interest loan to help consumers build credit and access an affordable small-dollar loan. This social lending program is designed to help low-income consumers build credit and transition into the financial mainstream. The program is supported with product-specific, mobile-accessible financial education that provides participants with information on a variety of topics, including building credit.

MAF received funding from the Center for Financial Services Innovation’s Financial Capability Innovation Funds to evaluate the program. A partnership with a collaborative of funders led by the Citi Foundation, the Funds provided support to innovative projects designed to help low-income and underserved consumers adopt positive financial behaviors.