17 Black-Owned and Black-Led Banks Offering Auto Loans

Minority-owned banks and credit unions, classified as Minority Depository Institutions (MDIs) by government agencies, are financial institutions where most board members or stockholders are people of color.

MDIs play a crucial role in helping underserved communities. While such institutions don’t solely lend to minorities, they tend to provide more loans and accounts to minority communities than non-minority-owned banks do, according to data from the Federal Deposit Insurance Corp. This is particularly important because members of minority communities, like African Americans, often lack access to financial services and are typically underserved by financial institutions.

Supporting Black-owned or Black-led financial institutions and lenders by doing business with them can help minority communities economically.

Black-owned and Black-led auto lenders

Note that the lenders are listed alphabetically.

Primary location(s): Columbus, Ohio

Good for: Borrowers in Franklin County, Ohio, who want to bank with an institution that empowers the local community. Note that Adelphi is a newer institution that primarily provides commercial lending and, according to a spokesperson for the bank, has only approved a handful of auto loans thus far.

Primary location(s): Birmingham, Alabama

Good for: Residents of Birmingham, Alabama, with great credit scores. Alamerica only provides auto loans under exceptional conditions, and applicants must have good credit scores to apply. The bank does not offer prequalification and does not provide refinance loans.

Primary location(s): Alabama and Georgia

Good for: Veterans and first-time car buyers in Alabama and Georgia. Citizens also offers auto refinance loans. While any U.S. resident can apply for a credit card with the credit union, only residents of Georgia or Alabama can apply for consumer loans, like auto loans, through the institution.

Primary location(s): Detroit, Michigan, and Minneapolis, Minnesota

Good for: Detroit or Minneapolis applicants seeking a preapproved car loan with a local bank. First Independence provides car loans as well as financing for recreational vehicles like campers, motorcycles, motor homes, snowmobiles and travel trailers.

Primary location(s): Chicago, Illinois

Good for: Individuals who live in Chicago’s South Side community. The bank’s website notes that it aims to serve communities outside of Chicago, in Illinois and nationwide, in the future.

Primary location(s): North Carolina

Good for: North Carolina borrowers who want to buy new or used cars between $7,500 and $75,000. The bank also offers auto loan refinancing. M&F has an “Outstanding” Community Reinvestment Act (CRA) rating from the FDIC, which means that it has maintained a record of meeting the needs of the low to moderate-income communities that it serves.

Primary location(s): Columbia, South Carolina

Good for: South Carolina residents, particularly those who are historically underserved people and those who were previously unbanked or underbanked.

Methodology: We created this index of auto lenders based on lists of “minority depository institutions,” or MDIs, from the Federal Deposit Insurance Corp. and the National Credit Union Administration. The FDIC considers a bank or financial institution to be a MDI if at least 51% of its stockholders are “minority individuals” or most of its board of directors and the community it serves are minorities. The NCUA considers a credit union to be a MDI if more than 20% of its current members, board members and community it serves are Asian American, Black American, Hispanic American or Native American.

Note that this is not an exhaustive list.

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