Credit Building Loans
This program is offered to each employee, an opportunity to gain knowledge in the areas of credit, financial institutions, and credit obligations, as well as to encourage each individual to become credit worthy and continue on to mainstream financial institutions.
Credit Building Loans are specific to LLBO Government, Gaming, and Housing employees.
The maximum amount loaned to an employee may not exceed one thousand dollars ($1000). A new employee who has not yet received a paycheck is eligible for a loan of three hundred dollars ($300).
Loan |
Minimum |
Maximum |
Interest |
Fees |
Terms |
Collateral |
Equity |
Credit building loans |
$200 |
$1,000 |
8-12% |
$50 |
Up to 6 months |
Yes |
No |
Credit building loans |
|
$150 |
12% |
$25 |
Repaid within |
No |
No |
Current employees are required to sign a payroll deduction. These loans will be at a 8-12% interest rate, based on the number of years employed, and include a $50 processing fee. Loans to current employees will be secured by annual leave equivalent to the loan amount requested. As collateral, the employee will not be able to use that portion of annual leave until the loan is paid in full.
Loan paybacks will be in the form of a payroll deduction. The deduction will be no less than ten percent (10%) of the total loan amount. If the employee chooses to pay off the loan in its entirety, they may do so through the CBLP loan officer. If the employee leaves employment before the loan has been paid off, their annual leave will be used to pay for the remaining amount owed.
For new full time, regular employees, the maximum loan amount will be $150, including a $25 processing fee, to be repaid within the first full two pay periods.
To assure that employees are not dependent on credit building loans and end up in a dangerous debt spiral, CLBP will require financial literacy classes and financial management coaching to those members who request more than two loans within a year, in the form of classes or one-on-one coaching.
Employees may only take out one loan at a time; any employee who currently has a balance with the Leech Lake Band of Ojibwe in the form of a payroll loan, or tribal referral loan, will not be eligible for a loan. To decrease the chance of dependency on loans, we offer financial literacy training if an employee needs to take out more than two loans per year.
Forms
| Form | Microsoft Word |
Microsoft Excel |
Adobe pdf |
|---|---|---|---|
| Credit Building Loan Application |  |
 |
|
| Employee Deduction Request | |
|
|
| CBLP Release of Information |  |
|