In the vast majority of cases your loan will be repaid in full, minus any exchange rate losses that may be incurred.
The money you lend through Lendwithcare is passed from CARE to the local partner and from the local partner to the entrepreneur. This exchange then happens in reverse when an entrepreneur makes regular loan repayments.
Each loan is accompanied by a repayment schedule; this schedule is your guide to planned repayments. However, we cannot offer a guarantee that you will be repaid. Despite the best support and training provided by the local partner managing the loan, entrepreneurs can still default in their repayments. Default rates are very low, less than 1%. So, there is a small possibility that the entrepreneur won’t be able to pay back their loan to you, in which case you will not receive the affected repayments. If this happens, we will let you know the reason why the entrepreneur defaulted. Lendwithcare loans are generally provided by many lenders so in the event of a rare default, the loss to a single lender is usually quite small.
When CARE receives a repayment from the local partner on a loan that you have made, CARE will allocate the amount to your lender account. You can then choose to use the funds to support more entrepreneurs, withdraw your funds, or donate to support Lendwithcare's operational costs and other important poverty fighting initiatives from CARE International UK. If amounts are allocated to your lender account and you are inactive for a period of 12 months, the amount in your lender account will be donated to CARE as stated in the Terms of Use. To avoid this from happening, we recommend logging into your account on a regular basis.
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.