Federal financial regulators issued principles for responsibly offering small-dollar loans to meet customers' short-term credit needs. According to the interagency principles, responsible small-dollar products generally reflect:
- A high percentage of customers successfully repaying their small dollar loans in accordance with original loan terms.
- Repayment terms, pricing, and safeguards that minimize adverse customer outcomes.
- Repayment outcomes and program structures that enhance borrowers’ financial capabilities.
A March 26 interagency statement encouraged financial institutions to offer responsible small-dollar loans to consumers and small businesses in response to COVID-19.