ST. LOUIS — Nonprofit lender Justine Petersen and the charitable arm of financial firm Clayton Nisa Investment Advisors have launched a new program to refinance high-interest auto loans for people with subprime credit scores.
The program, initiated with an investment of $250,000 from the Nisa Charitable Fund, aims to reduce interest rates paid on auto loans for St. Louis residents with low credit scores and matches new loans with credit counseling services from Justine Petersen.
“Research shows that those with subprime credit in St. Louis are paying an annual interest rate of about 20% on their auto loan, which consumes a disproportionate amount of their monthly income,” said Robert Boyle, Founder and CEO of Justine Petersen. declaration.
The program can offer car loans with interest rates of 6%. A client who just took out a new loan through the program reduced her interest rate by 20.35%, saving her about $120 a month in interest, according to Justine Petersen.
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“This is precisely the kind of meaningful impact we want to achieve in our collaborations with community organizations in St. Louis,” Nisa CEO David Eichhorn said in a statement. “Our work with Justine Petersen is about achieving tangible, scalable results and staying true to the Nisa Charitable Fund’s mission to support organizations that improve access to capital among traditionally underserved groups in St. Louis.”
The program’s first cycle aims to refinance about 50 auto loans, and Justine Petersen hopes to raise additional capital to expand it soon. Interested borrowers can call Justine Peterson at 314-533-2411 to see if they qualify.
Originally published 5:45 p.m. Tuesday, March 1.