![Minnesota Sees Rise of Payday Loan Alternatives](http://townsquare.media/site/67/files/2017/12/Money-stock-image.jpg?w=980&q=75)
Minnesota Sees Rise of Payday Loan Alternatives
MINNEAPOLIS (AP)-- Sky-high interest payday loans are getting some more affordable competition in the Twin Cities area from community-based organizations.
Exodus Lending is one nonprofit offering residents interest-free loans to help pay off debts. Exodus Executive Director Sara Nelson-Pallmeyer says the organization has helped about 200 borrowers since April 2015.
Village Financial Cooperative plans to open a credit union next year. Village
Financial development director Me'Lea Connelly says the credit union's goal is
to increase access to banking services, including low-cost, short-term, small
loans.
There are at least five credit unions in Minnesota that already make
small-dollar or auto loans to people wouldn't normally qualify for a loan.
Payday lenders argue that high-interest rates are necessary to make small loans
worthwhile.
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