Many microentrepreneurs and small-scale producers cannot afford the up-front costs associated with productive asset purchases and do not meet the lending requirements of traditional banks, and this lack of access to finance constrains their ability to grow their business.
Incremental home improvements can be financed through small loans to low-income families, and supported by guidance on project planning and budgeting.
WHO IS SERVED?
The target demographic is microentreprenuers and small-scale producers living on less than <$5.50 PPP/person/day.
WHAT IS DELIVERED?
Clients must receive:
- Tailored, individual or group loans to finance a productive asset from a vetted supplier, underwritten for productive use
- AND basic know-your credit training
AND one or more of the following, as essential to the productivity of the asset:
- Product warranty and customer support;
- Specialized training.
WHY IS IT IMPACTFUL?
Household net incomes increase due to:
- Cost savings
- Revenue enhancement