How does CEO make loan decisions?

For all loan applications except for Credit Building Loans, CEO requests supporting financial documents such as bank statements, pay stubs, a family budget, and other relevant documents depending on the loan type. Submission of an application will result in a hard inquiry credit check as CEO will review an applicant's credit profile and history. CEO's Internal Loan Committee will review the information from these documents and inquiries. Applicants are then rated in each of three categories:

1. Banking & Savings
2. Income & Budget
3. Credit and Debt

Here are some factors that help the loan committee to make a loan decision.

What kind of income do I need to apply?

• Generally, you need proof of income verifiable by pay stubs, receipts, or other documents. There is no exact income threshold, as we consider your debt-to-income ratio during the application review process. The most important factor is your income compared to your expenses. Your income should be sufficient to cover your cost of living expenses and projected loan repayments.
• Applicants relying on gig economy income (for instance, Uber, Lyft, DoorDash, etc.) must provide proof of three (3) months of consistent income in their applications to maximize chances of approval (except for Credit Building Loans).
• Suppose an applicant submits proof of income from a spouse, household member, friend, etc., to meet the income eligibility requirements. In that case, that person must be listed as a co-applicant on the loan application for their income to be considered part of the application.
• Job offer letters showing an applicant's or co-applicants salary are only accepted if the person has not started the job.

What kind of documentation should I submit?

• The specific documentation required will vary depending on the type of loan you are applying for. To determine the necessary documents, please consult the article - What are the documents required for application?

• Any required documents should be up-to-date, complete, without missing pages, and submitted as clear, high-resolution images.
• Submitting documents as PDF files is the safest way to ensure there will be timely processing of your application due to technical difficulties in reviewing your documents.

Can I apply for multiple CEO loans?

Yes, but please consider our following policies:

• If you are applying for multiple loans at once, we will consider your total debt and income, reducing your chances of approval.
• Borrowers may NOT "stack" or apply for multiple loans to purchase or refinance a vehicle, such as (Personal Loan + Auto Loan, Business Loan + Auto Loan)
• Applying for both a personal loan and an auto loan simultaneously could impact your eligibility for a downpayment discount on the auto loan. You may only qualify for the discount if you can provide evidence of savings that will be used for the downpayment.
• If you need multiple loans, the best approach would be to apply for the most urgent loan, show on-time payment for 3-6 months, and apply for the other type of loan. The on-time payment on the active loan has a significant impact on the chance of approval of the new loan application.
• One type of active loan at a time per borrower. Borrowers may not have multiple active loans of the same type. For example, the borrower could apply for an Auto Purchase loan and an Immigration loan, but NOT two Auto Purchase loans.
• Businesses may receive one business loan per business. Business partners may only apply for one business loan for the same business.
• We do not count Credit Building Loans in the above policies. Having an active credit-building loan with a timely payment history can only help your chances of approval for another loan type. 

What if I have overdrafts, collections, or other things that harm my chances?

Recent multiple overdrafts on bank statements, collections, or delinquent accounts on the credit report will negatively impact your loan application since they may create concerns regarding your repayment ability. However, there might still be multiple ways forward.

• Explain past challenges. For example, an applicant with a higher number of overdrafts or delinquent credit lines due to job loss but who also provides proof of recently being hired into a better-paying job that strengthens the household budget should still have a chance of being approved despite the overdrafts. You may explain in your application and include documentation that you are taking steps to address the issue.
• You may offer a co-signer. A 'co-signer' guarantees they will pay your loan if you cannot. Loan repayment information is reported to both the borrower and the co-signer's credit history. CEO exclusively reviews the co-signor's credit history, bank statements, and repayment ability; the better the co-signer's credit score and financial position, the more they will help your chances for approval. Co-signors with a negative credit history do not help your chances.
• You may offer collateral. Depending on the type of loan and loan amount, you may be able to offer your personal vehicle as collateral for your loan. While this primarily is used for larger CEO Business Loans, applicants may offer their personal vehicle as collateral for any loan request. In borderline cases, the presence of collateral may help secure loan approval. Please note that when a vehicle is offered as collateral for the loan, CEO will hold the lienholder position until the loan is paid in full.
• You may decide to postpone your application until you address the issue. In many cases, it may make sense to simply delay the application until you can address or fully eliminate some issues. For example, waiting one more month to show bank statements without overdrafts or bringing past-due accounts current can significantly increase your chances for loan approval.
• Any available documents that substantiate your situation should be included with your application. We are happy to consider applications from borrowers with previous credit difficulties; however, you must provide documentary proof in your application that you have taken steps to address any derogatory credit issues.

Who makes the loan decisions?

All CEO's loans must be approved by two members of the CEO's Internal Loan Committee (ILC), composed of CEO staff. ILC members have a combined 40 years of experience working with refugees, immigrants, and other credit-thin households. Your financial coach or business counselor is there to support you with preparing your application but will NOT be involved in making a decision on your application.

Business, Immigration, and Education Loans also undergo an additional technical review by related IRC headquarters staff (for example, all Immigration Loans are reviewed by IRC's national Immigration & Legal Services staff to ensure the underlying case for which the funds requested is sound). 

Business Loans over $20,000 undergo an additional review by the CEO's External Loan Committee (ELC). The ELC comprises independent finance and business experts who volunteer their time in support of IRC and CEO.

What if my loan is denied?

CEO wants to make every loan application we receive. If your application is not approved for funding, we will offer clear reasons for why your loan was denied and will give you as much information as possible about what steps you can take to strengthen your application if you decide to apply again.