LILLI

1
LILLI

Low Interest Loans for the Low Income
The Society of St. Vincent de Paul Belleville,
Illinois Council Pat Hogrebe, R.N., M.A.
Executive Director
2
How much interest is paid in 12 months on a loan
of 300 at 650 interest rate?

LILLI Program Low Interest Loans for Low
Income The Society of St. Vincent de Paul,
Belleville, Illinois Council
3
Total Interest Paid 1,659 in 12 months on a
300 loan http//www.bretwhissel.net/cgi-bin/amor
tize

LILLI Program Low Interest Loans for Low
Income The Society of St. Vincent de Paul,
Belleville, Illinois Council
4
The interest paid in 12 months on a loan of 300
at 4 interest rate is 6.48. Monthly payment
25.54

LILLI Program Low Interest Loans for Low
Income The Society of St. Vincent de Paul,
Belleville, Illinois Council
5
So which loan would you choose?

Loan One 300 Repayment 1,959
Loan Two 300 Repayment 306.48
LILLI Program Low Interest Loans for Low
Income The Society of St. Vincent de Paul,
Belleville, Illinois Council
6

LILLI Program Low Interest Loans for Low
Income The Society of St. Vincent de Paul,
Belleville, Illinois Council
7

LILLI Program Low Interest Loans for Low
Income The Society of St. Vincent de Paul,
Belleville, Illinois Council
8
LILLI Low Interest Loans for the Low Income

• History
• The Society of St. Vincent de Paul
• Voice of the Poor Committee
• Start a credit union loan program for the working
  poor to help meet unexpected and critical
  expenses such as for car repair, home repair,
  medical dental expenses.

LILLI Program Low Interest Loans for Low
Income The Society of St. Vincent de Paul,
Belleville, Illinois Council
9
LILLI Low Interest Loans for the Low Income

• Loans are not made for rental or utility
  assistance.
• Small loans (300 maximum plus 25 for savings
  account) to the needy.
• Nurture responsibility to the individual.
• Avoid the high usury rates of title and pay day
  loan facilities.

LILLI Program Low Interest Loans for Low
Income The Society of St. Vincent de Paul,
Belleville, Illinois Council
10
Partnership with
Catholic Community Credit Union (CCCU)

• The Society of St. Vincent de Paul deposits funds
  in an account at the CCCU.
• These funds are the security against the loans we
  authorize the CCCU to extend.
• St. Vincent de Paul screens applicants, then
  authorizes the CCCU to lend a stated amount.

LILLI Program Low Interest Loans for Low
Income The Society of St. Vincent de Paul,
Belleville, Illinois Council
11
Partnership with
Catholic Community Credit Union (CCCU)

• Applicant completes a short application at the
  CCCU.
• Applicant opens an account to become a member of
  the CCCU.
• Repayment schedule is explained to the applicant.
  
• Interest payment is 4 of loan.

LILLI Program Low Interest Loans for Low
Income The Society of St. Vincent de Paul,
Belleville, Illinois Council
12
Catholic Community Credit Union (CCCU)

• CCCU keeps St. Vincent de Paul informed of the
  loan repayment process or loan delinquencies.
• Credit union member may cash a payroll check
  without being charged a fee.
• Applicant agrees to attend a budgeting class by
  SVDP.

LILLI Program Low Interest Loans for Low
Income The Society of St. Vincent de Paul,
Belleville, Illinois Council
13
Catholic Community Credit Union (CCCU)

Check for loan amount is issued directly for the
purpose intended. Check NEVER issued to
borrower.
LILLI Program Low Interest Loans for Low
Income The Society of St. Vincent de Paul,
Belleville, Illinois Council
14
Loan application process

• Prospective applicant contacts the Belleville
  SVDP office to make a preliminary loan request.
• Application form completed and returned.
• SVDP office schedules an appointment for the loan
  interview with applicants who meet the
  established criteria.

LILLI Program Low Interest Loans for Low
Income The Society of St. Vincent de Paul,
Belleville, Illinois Council
15
Loan application process (continued)

• Criteria
• Passes quick financial background check
• Sufficient income to make payments
• Understands responsibility to repay loan
• Attends budgeting class

LILLI Program Low Interest Loans for Low
Income The Society of St. Vincent de Paul,
Belleville, Illinois Council
16
Loan application process (continued)

• Two or three members of the Loan Committee are
  present to conduct an interview.
• Application is faxed to CCCU.
• Applicant is notified within five working days
  regarding the status of the loan application.

LILLI Program Low Interest Loans for Low
Income The Society of St. Vincent de Paul,
Belleville, Illinois Council
17
Loan application process (continued)

• If the loan application is approved, the SVDP
  office schedules an appointment for applicant to
  complete the loan process with an officer of the
  bank.
• Terms of the loan will be reviewed, a payment
  schedule issued, and the loan agreement signed.

LILLI Program Low Interest Loans for Low
Income The Society of St. Vincent de Paul,
Belleville, Illinois Council
18
Approval Letter if Loan is Granted
Dear   Congratulations on being approved for a
loan with LILLI (Low Interest Loans for the Low
Income), a program offered by Catholic and
Community Credit Union and the Belleville Council
of the Society of St. Vincent de Paul. We are
very pleased to make this low interest loan
program available to you and just want to remind
you that repayment of your loan is required. This
program depends upon repayment by you and others
just like you who have received funds through
LILLI. By repaying your loan, you will be
ensuring that the program can continue to help
others. Also, timely repayment of this debt will
raise your credit score and help repair credit
problems.   Please do not hesitate to contact us
if you have any questions. We are very happy to
serve you and hope that participation in LILLI
has had a positive impact on your
life.   Sincerely,

LILLI Program Low Interest Loans for Low
Income The Society of St. Vincent de Paul,
Belleville, Illinois Council
19

LILLI Program Low Interest Loans for Low
Income The Society of St. Vincent de Paul,
Belleville, Illinois Council
20

LILLI Program Low Interest Loans for Low
Income The Society of St. Vincent de Paul,
Belleville, Illinois Council
21

LILLI Program Low Interest Loans for Low
Income The Society of St. Vincent de Paul,
Belleville, Illinois Council
22

LILLI Program Low Interest Loans for Low
Income The Society of St. Vincent de Paul,
Belleville, Illinois Council
23

LILLI Program Low Interest Loans for Low
Income The Society of St. Vincent de Paul,
Belleville, Illinois Council