WaterCredit leverages philanthropy to allow people to tap into their potential as customers. For example, it provides subsidies and technical assistance to microfinance institutions to help them launch loan portfolios. The loans enable the world’s poor to pay for a connection to a water source or install a toilet in their homes.
Loans from microfinance institutions participating in the WaterCredit initiative come with specific criteria:
Over 67 microfinance institutions worldwide have participated in the WaterCredit inititive to develop and expand their water and sanitation lending portfolios.
To date, these institutions have accessed $19.4 million in philanthropic support from Water.org to jumpstart their WaterCredit loan portfolios. As a result, these MFIs have leveraged over $463 million in social and commercial investment capital to make over 1.6 million water and sanitation loans to families living in poverty. This has resulted in more than 7.1 million people gaining access to safe drinking water and/or sanitation.
WaterCredit is transforming lives and gaining momentum. It’s proof that market solutions can significantly increase social impact.
WaterCredit accelerates progress toward ending the global water crisis. But for this initiative to reach its full potential, we need to unlock more, affordable social investment capital to help microfinance institutions and other enterprises scale their water and sanitation efforts to meet market demand.
This fund launched in 2014 to provide dedicated loan capital at a slightly lower cost to seven of Water.org’s highest performing microfinance institutions in India, helping them scale their water and sanitation lending portfolios.
The loans from the $11 million fund are projected to reach at least 730,000 people, while targeting a two percent return.