Lending Circles

What are Lending Circles?

People around the world lend and borrow with each other when bank loans are not an option. KYCC’s Lending Circles formalizes this practice to help borrowers access zero-interest loans that help them build credit. With more savings, less debt and better credit, Lending Circles participants can finally pursue their dreams: pay off debt, go to college, buy homes, become citizens, and start businesses.

How it Works

Lending Circles provides zero-interest loans that help people build credit. Every participant starts by taking an online financial training class. Then, the six to twelve members meet in person to form the Lending Circle and collectively decide on the loan amount; for example, a group of 10 people might decide they each want a loan of $1,000. Each participant in the Lending Circle can have their own goal for the money, whether it’s paying off debt or for tuition.

Everyone in the Lending Circle makes the same monthly payment, ranging from $50 to $200, which is reported to the credit bureaus. The loan rotates monthly to a different participant: in the first month, one participant receives $1,000, and each month another member receives the total sum until everyone has gotten a chance. The program is proven to help participants establish credit histories for the first time and increase low scores.

How to Sign Up

Visit http://www.lendingcircles.org/

What Will I Need?

Please have your latest two months of paystubs, bank information, and photo identification available when signing up.


Alice Kim at (213) 365-7400 Ext. 5121 or email her at alicekim@kyccla.org or Doris Valenzuela at (213) 365-7400 Ext. 5210 or email her at dvalenzuela@kyccla.org.