DURHAM — Duke University has pledged to deposit up to $5 million in the Latino Community Credit Union over the next five years.
The money, which will be deposited in million-dollar increments, will be used to help provide affordable financial services for low-income Durham residents who find it difficult to obtain loans and mortgages through conventional lending sources because they lack credit history.
In its six years of operation, the credit union has made more than 7,800 consumer loans for $32.4 million.
Seventy-five percent of the borrowers have no credit history when they first receive a loan from the credit union, and an average of 750 members create their first credit history each year through its credit-builder and other secured loans, according to union representatives.
Since its creation in 2000, the credit union has grown from $10 million to $34 million in assets, serving more than 45,000 members with five branches across North Carolina.
Members now have $25 million in total savings.
Duke became one of the credit union's first and largest supporters with an initial deposit of $400,000.