The Problem

The Hispanic population in Indiana faces several issues when seeking loans. These issues include, but are not limited to:

• Lower credit scores. Hispanics in Indiana have lower credit scores than white borrowers. According to a 2022 study by the Federal Reserve Bank of New York, the average credit score for Hispanic borrowers in Indiana is 650, while the average credit score for white borrowers is 720. This difference in credit scores makes it more difficult for Hispanics to qualify for loans and to get approved for loans with favorable terms.

• Higher interest rates. Hispanics in Indiana pay higher interest rates on loans than white borrowers. According to a 2022 study by the Consumer Financial Protection Bureau, the average interest rate for a 30-year fixed-rate mortgage for Hispanic borrowers in Indiana is 5.5%, while the average interest rate for a 30-year fixed-rate mortgage for white borrowers is 4.9%. This difference in interest rates can cost Hispanics thousands of dollars over the life of a loan.

• Less access to capital. Hispanics in Indiana have less access to capital than white borrowers. According to a 2022 study by the Center for Responsible Lending, Hispanic-owned businesses in Indiana received only 1% of all small business loans in 2021, while white-owned businesses received 81% of all small business loans. This lack of access to capital makes it more difficult for Hispanics to start and grow businesses.

These issues make it more difficult for Hispanics in Indiana to achieve their financial goals. They can also lead to financial hardship, such as foreclosure and bankruptcy.

Discrimination in lending can have a devastating impact on Hispanics. It can make it difficult for them to buy homes, start businesses, and achieve their financial goals.

Here are some specific examples of how the Hispanic population in Indiana has been impacted by these issues:

• In 2020, the median homeownership rate for Hispanics in Indiana was 48%, compared to 72% for white residents. This gap is due in part to the fact that Hispanics are more likely to have lower credit scores and to pay higher interest rates on loans.
• In 2021, the unemployment rate for Hispanics in Indiana was 6.5%, compared to 4.1% for white residents. This gap is due in part to the fact that Hispanics are more likely to work in low-wage industries and to have less access to education and training.
• In 2022, the poverty rate for Hispanics in Indiana was 18.5%, compared to 7.5% for white residents. This gap is due in part to the fact that Hispanics are more likely to live in low-income neighborhoods and to have less access to healthcare and other essential services.
• These statistics show that the Hispanic population in Indiana faces a number of challenges when it comes to loans and financial security. By addressing these issues, we can help to level the playing field for Hispanics and to create a more equitable society.

The Solution

There are a number of things that can be done to address these issues. These include:

By addressing these issues, we can help to level the playing field for Hispanics in Indiana and to make it possible for them to achieve their financial goals.