No, interest is not paid to you on the loans that you provide. Lenders do not receive interest on their loans because Lendwithcare does not charge interest to our local partners. However, most of our local partners (except Akhuwat in Pakistan) do charge interest to their clients in order to cover operational costs. However, when we select our local partners, they have to meet various criteria, including charging a reasonable and fair interest rate relevant to the local context.
The interest free capital our local partners receive through Lendwithcare enables them to either lend to slightly poorer clients than they might otherwise, or to move into other more distant areas. For example, Lamac Multi-Purpose Cooperative, our partner organisation from the Philippines, has used Lendwithcare funding to extend operations to geographically more remote communities, such as Bantayan Island which lies off the northern coast of Cebu. It has also used the funding to reduce the interest rates it charges on all Lendwithcare supported loans. In Ecuador, our local partners have also passed on the benefits of receiving interest free capital from Lendwithcare to their clients through lower interest rates.
View all 'Loans & Lending' content >
Next: Do I need to provide financial details when registering? >
We're proud to introduce a new way to support low-income families most at risk of climate change through Lendwithcare. Find out more about making a grant today.