You can choose to make an investment to an individual project or a loan of any amount to a village. Once your chosen project is funded or a village has received sufficient credit your loan will be transferred to the village for distribution. This can take a few weeks.
Loans are managed by local community savings and credit organizations
The combined loans received will be distributed by the community savings and credit organizations to individual projects. On occasion, it maybe that the individual project you have selected has been funded through other sources. In this case, your loan will pass to a similar project in the same village.
The borrower repays the loan to the community organizations, of which they are normally a member in monthly installments.
These repayments are recycled through to other projects and so on, so your loan and the interest it generates will benefit many individuals and families. It will continue to be recycled until it reaches maturity.
Your loan will benefit the poorest villagers
The very poorest borrowers can only take very tiny loans, so this is one reason for recycling loans in this way. These borrowers are unable to get loans from most microfinance institutions because they present too much of a risk. By diversifying the risk across many projects, the villages are able to lend to the very poorest people and to give them a step up.
Your interest will be repaid annually at 3% and then the full loan will be transferred back on maturation after 3 years. Money will be transferred back when sufficient funds are available in the village, so your loan maybe repaid slightly before or slightly after three years. Once the interest or repayment reappears in your account you can choose to reinvest it or withdraw it.
You can be kept updated on how your money is being used throughout the loan period and how it has changed lives in your chosen village.