The Beneficent loans program offers interest-free loans to Canadians who are suffering from heavy and immediate debt burdens due to high interest rates, and are struggling with repayment. This kind of debt can be defined as bearing significant interest rates while also having a maturity of a maximum of one year e.g. credit cards, payday loans, etc.
How it Works
The following infographic explains how Beneficent’s loan model works to create a virtuous cycle of continuous benefit to members of the community. Once borrowers who were once in debt are back on their feet, they are encouraged to give back to the community and pay the benefit forward.
Donors contribute to the pool
Donors choose between lump sum or periodic contributions , gradually building the pool of funds available for loans
Borrowers withdraw funds
Eligible individuals are assigned a loan officer who will walk them through the loan process and issue the loan
Borrowers have access to a financial coaching program to help them with financial management, planning, and budgeting. Education is crucial to take a proactive approach to debt relief
Borrowers begin repaying their debt to Beneficent, interest-free, in monthly installments
Repayments and coaching conclude
When borrowers are fully repaid, they are encouraged to give back to our loan program
The pool grows
The cycle continues and the pool of funds available for loans grows, allowing Beneficent to reach out to more people with a broader set of solutions. The community is gradually lifted out of debt
With average credit card debt in Canada over $4,200 in 2019, it is easy to find oneself in spiralling debt without an easy way out. Beneficent’s loan program helps those in this situation ‘get back on their feet’ by cutting off the effects of compounding interest and allowing them to rebuild their wealth, instead of seeing it being siphoned off towards ever-increasing debt payments.
Credit card Illustration by Delesign Graphics
Income graph for savings Illustration by IRA Design on Iconscout
Business leader Illustration by Delesign Graphics on Iconscout
Salary day Illustration by Delesign Graphics on Iconscout
Attract users Illustration by Delesign Graphics