Program offers loans to assist with building credit

The Hawaiian Council announced Thursday the launch of a new lending initiative aimed at helping residents establish credit and improve financial stability.

The Koa Credit Builder Loan Program offers approved participants a $2,500 loan with a repayment term of up to 30 months. According to the organization, the program charges an interest rate of 8% and a 2% loan fee.

The monthly payments are set at $92.22 for a 30-month term.

The program is open to residents throughout the state, including Maui County.

The Hawaiian Council, formerly known as the Council for Native Hawaiian Advancement, reported that the program is designed to provide a structured pathway for individuals working toward financial goals such as renting a home, purchasing a vehicle or pursuing business opportunities. It is named after the koa tree to symbolize strength built over time.

Hawaiian Council Chief Executive Officer Kūhiō Lewis emphasized the necessity of credit access for long-term success.

“Building credit is an essential step toward financial stability, but it’s often one of the hardest barriers for our community to overcome,” Lewis said. “The Koa Credit Builder Loan is more than a loan. It’s about education, guidance, and making sure our community has the support it needs so they don’t have to navigate this process alone.”

The program operates by reporting each on-time monthly payment to major credit bureaus, allowing participants to generate a positive credit history. In addition to the financial transaction, participants are required to complete a financial empowerment course. The organization stated this educational component is designed to equip borrowers with the knowledge to make informed financial decisions.

To be eligible for the program, applicants must be a Hawaiʻi resident aged 18 or older. They must demonstrate proof of income and the ability to repay the loan. Additionally, applicants cannot have had late payments or a bankruptcy discharge within the past three months. Agreement to automatic payments is required.

The funds are released only after the completion of the required financial course.

The Hawaiian Council is a Certified Native Community Development Financial Institution. The organization currently facilitates a $10 million community loan fund that serves Hawaiʻi-based small businesses, nonprofit organizations and low- to moderate-income families. As a Department of Housing and Urban Development certified counseling agency, it also provides one-on-one counseling for asset building.

Applications are being accepted online at hawaiiancouncil.org/koa. Residents may also call 808-596-8155 for more information.