Loan Products

All NILA members make installment loans, which are considered the safest kind of loan for any small loan borrower and the easiest to pay off. All loans are payable in equal periodic installments of principal and interest: that is, they fully amortize over the life of the loan and do not have a balloon payment at the end.

Loan Origination

NILA members practice responsible underwriting, attempting to assess the borrower’s stability, ability and willingness to repay the loan. Responsible underwriting includes examining factors like credit bureau reports, monthly free income available for debt service, the length of time the consumer has been gainfully employed, and the amount of the consumers debt compared to assets and income.

NILA members take care to explain the terms of a possible loan transaction in as clear and transparent a manner as possible.

Community Involvement and Financial Literacy

NILA members’ branch offices are encouraged to be a vital part of the communities in which they operate and are active in many community activities and charitable endeavors. NILA members fully support and participate in financial literacy programs.

Collections

NILA members support and observe all applicable state laws regarding collection practices. NILA members are direct, first party lenders and they value their relationship with their borrowers including those borrowers who may be experiencing financial difficulties. Because NILA members are first party lenders, they have the ability to work with borrowers who are experiencing temporary financial difficulties and to offer those troubled borrowers meaningful opportunities to reestablish their good credit with the NILA member. It is the practice of NILA members to “go the extra mile” with the borrower to cure a delinquent account. NILA members also support the activities of the non-profit Consumer Credit Counseling Services, but will repudiate and, where appropriate, report to law-enforcement authorities, the activities of Debt Management firms that prey on troubled consumers.

Ancillary Products

NILA members may also offer optional ancillary products such as credit life and involuntary unemployment insurance. These hold real value to the consumer in the event of some unfortunate or catastrophic situation. Such products will only be offered where there is a tangible net benefit to the borrower, which will be carefully explained when the loan is made. It will also be explained, where appropriate, that such products are voluntary and are not sold as a condition of the loan.

Advertising and Solicitation

NILA members use a variety of advertising media to acquire and attract business and are committed to avoiding any advertising methods that are deceptive. The same applies to advertising aimed at the solicitation of repeat business. NILA members do not use high pressure sales tactics. Refinancing will only be offered to a consumer where there is a direct tangible net benefit to the borrower from the transaction.