Need cash in the Bronx? Get a low-interest small-dollar loan — and build your credit while you’re at it.
| Product Name | Spring Bank personal loans |
|---|---|
| Min. Loan Amount | $500 |
| Max. Loan Amount | $10,000 |
| APR | 8% to 16% |
| Interest Rate Type | Fixed |
| Minimum Loan Term | 0.5 years |
| Maximum Loan Term | 3 years |
- Must be employed
- Annual income of $22,000+
- No bankruptcies in 5+ years
- No judgments or large collections on your credit report
- Provide two different forms of ID
- Credit score of 635+ (excl. Credit Builder and Employee Opportunity loans)
What makes Spring Bank unique?
Spring Bank is a local financial institution designed to meet the needs of low- and middle-income members of its community in the South Bronx. The US Treasury Department designates it a community development finance institution for the way it’s served the members of its community.
It also makes a particular effort to support small businesses, encourage entrepreneurs and nonprofit organizations in the area.
A development finance institution is a private, specialized financial institution focused on responsible alternative lending — like bank accounts, microfinancing and lines of credit — to historically underserved communities. CDFIs focus on helping their communities to establish credit histories, build savings accounts and generally access the financial mainstream.
What is Spring Bank?
Spring Bank is a community bank based in New York City’s South Bronx. When it opened its doors in 2007, it was the first bank to base its headquarters in the community in over 30 years. It’s highly local, though it opened a branch in Harlem in 2012.
Spring Bank’s personal loans are designed to help you build your credit and savings while meeting your immediate financial needs.
Loans include:
- Unsecured personal loans. Borrow up to $10,000 and pay it back from six months to three years without putting up collateral.
- Secured personal loans. Secure these loans with a savings account or CD, borrowing up to your account balance and repaying that amount over six months to a year.
- Employee Opportunity loans. This small-dollar loan provides an affordable alternative to payday loans or pawn shops.
- Credit Builder loans. Your credit score doesn’t matter when you apply for these loans — they’re designed to help you increase it.
Special loan programs
Small-dollar loans are where Spring Bank shines. Here’s how they work.
Employee Opportunity loan
Designed as an alternative to payday loans, the Employee Opportunity loan is a better option than short-term loans. But it isn’t for everyone: Your employer must be affiliated with Spring Bank to qualify.
| Loan amount | $1,000–$2,500 |
| APR | 16% |
| Loan term | 12 months |
| Fees | $20 application fee |
| Eligibility | You must:
|
| Uses | School supplies and uniforms, unexpected expenses, to pay off high-interest debt |
| Repayment | Deducted directly from your paycheck |
| Other benefits | After your loan is fully repaid, opt to deduct the same monthly payment from your paycheck and deposit it into a savings account. |
Credit Builder loan
Credit Builder loans are available in smaller amounts and to more people. They’re designed to help build or rebuild your credit while locking away your loan in a savings account, where your money stays until you pay it off.
With Spring Bank, you earn moderate interest on the money in your savings account. And you get full access to your unrestricted funds when your loan matures. It reports your responsible payments to credit bureaus monthly, which means you could see a small jump in your credit score within six months to a year after taking out your loan.
| Loan amount | $500–$1,500 |
| APR | 8% |
| Loan term | 6–12 months |
| Fees | $20 application fee |
| Eligibility | You must:
|
| Uses | Any legitimate purpose |
| Repayment options | Direct deposit, autopay, check |
| Other benefits | After your loan is fully repaid, opt to deduct the same monthly payment from your paycheck and deposit it into a savings account. |
What are the benefits of getting a personal loan from Spring Bank?
- Low interest rates. Spring Bank is among the few financial institutions in the area that offers small-dollar loans at 16% interest.
- Low- and no-credit friendly. This is one of the few nonpredatory lenders offering loans to people with no or poor credit.
- Autopay and direct deposit discounts. Spring Bank knocks 1% off of your APR if you sign up for repayments automatically withdrawn from your account. With other lenders, it’s usually 0.25% — if they offer a discount at all.
- Borrow while building your credit. A few loans at Spring Bank are specifically designed to help borrowers build credit, but all loans have a dual function: to meet your financial needs and improve your financial situation.
- Superior customer service. Each representative we spoke with went above and beyond to answer our questions or put us in touch with someone more knowledgeable. It’s a uniquely human experience that you just don’t get with most lenders.
What to watch out for
- Limited locations. Spring Bank operates only two branches. If you live in New York, you might need to travel a bit to borrow from them — though it sounds worth it.
- Difficult to apply for other personal loans. Applications for loans beyond the Employee Opportunity or Credit Builder loan are hard to find.
- Not as fast as other small-dollar loans. It can take a week or two for the bank to process your loan, unlike payday lenders that can get you money within a day.
- Application on third-party site. The site’s privacy policy doesn’t extend to its application, which requires a redirect to a site called Happy Mango.
Compare personal loans from top online lenders
How’s its online reputation?
Spring Bank doesn’t have much of an online reputation. It’s not listed on the Better Business Bureau or Trustpilot. It has a 3.5 rating on Yelp based on three reviews, two of which breathlessly praise its customer service. (We were impressed with our experience too.)
The other review is a detailed account of a negative experience with a supervisor after the customer allegedly tried to cash a fraudulent check. It might require a grain of salt.
Am I eligible?
Requirements vary depending on the type of loan you apply for.
However, to meet Spring Bank’s basic qualifications you must:
- Be employed.
- Make at least $22,000 annually.
- Have no bankruptcies in the past five years.
- Have no judgments or large collections on your credit report.
- Be able to provide two different forms of ID.
How do I apply?
If you meet Spring Break’s eligibility requirements, apply online for a loan. The whole process should take from seven to 14 days.
After you submit your online application, a Spring Bank employee should get in touch with you within 24 to 48 hours to request further documentation. If additional documentation is required, you’ll submit submit it and wait for Spring Bank to contact you with your loan offer.
Carefully read your loan agreement before signing it.
I got a personal loan from Spring Bank. Now what?
It’s time to start repaying your loan. Sign up for direct deposit or autopay to knock 1% off of your interest. Unfortunately, this discount doesn’t apply to Employee Opportunity loans, which requires automatica repayments from your paycheck each month.
Keep an eye on your account and contact Spring Bank at 718-879-5000 with questions or concerns.
Bottom line
Spring Bank could be an affordable, accessible alternative for South Bronx residents who might be considering small-dollar loans from payday lenders or pawn shops.
The bank’s loans are easy to apply for and can help get you on track to building your financial health. It’s not for people who need money quickly, however, taking up to two weeks for you to see your cash.
Learn how Spring Bank compares to other short-term and longer-term personal loan providers. Or compare more personal loan options from New York credit unions.
