A microloan is a loan of $50 to $400, repaid in equal monthly installments of 1-4 months.

Despite their size, microloans can make an outsized impact in a member’s life. They can increase financial stability, keep someone on the path to financial wellbeing, and deepen their relationship with the credit union they trust.

$174 Size of the average microloan

2.2 months Tenor of the average microloan

52% of all credit unions over $500 million in total assets have members looking for a non-credit union microloan

Why does age matter?

The typical microloan borrower (29years old) is younger than a typical person in the U.S. (39), and far younger than the average credit union member (53).

The younger you are, the lower your credit score tends to be. People in their 20s have lower incomes, shorter payment histories, higher credit utilization, and higher student loan payments relative to older consumers. These factors make their credit scores lower than their older counterparts. That means they can’t easily access credit that underwrite based on credit score.

88% of microloan borrowers are Gen Z or Millennial

96% of microloan borrowers don’t have a prime credit score

Do microloan borrowers have regular income?

79% of microloan borrowers earn between $30,000 and $70,000 per year. That range includes the annual income of a credit union teller ($32,000), a starting teacher ($42,000), a firefighter ($51,000),and a policeman ($65,000). In fact, it includes the median U.S. household income of $70,000 per year.

A typical microloan borrower earns $45,000 per year.

Do microloans attract and retain members?

A provider of microloans has a great opportunity to acquire and retain members, particularly younger members who are searching for this solution.

For example, Dave is a fintech focused on growing its banking customers. They offer a microloan product, and they now have more members than every credit union in the U.S. except Navy Federal Credit Union. They use microloans to acquire their customers.

+ 2 Million Dave member growth in 2023

$147 Average microloan size used by Dave members

$24 Dave member acquisition costs


The Salus Solution

By using the Salus platform, credit unions can look past credit scores to identify emerging prime borrowers. Salus empowers credit unions to make good microloans to those members and invest in the long-term success of both member and credit union.

Microloan volume in the Salus model dataset
Microloans in the Salus dataset
Microloan borrowers in the Salus dataset
Microloan borrower savings versus borrowing from a payday lender

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