Giving Compass' Take:

• The Michael and Susan Dell Foundation to offer WaterCredit microloans to increase access to clean water for people in poverty in India, Bangladesh, Uganda, and Kenya.

• What are the advantages of the microloan structure? How can this model be applied to other essential services?  

• Learn five ways that microloans can strengthen your community. 

In 2004, the Michael and Susan Dell Foundation awarded more than $1 million to finance WaterPartners International (Water.org) in its efforts to provide safe water and sanitation to the poor in developing countries.

WaterPartners International launched a pilot WaterCredit Initiative which incorporated microfinance approach into water and sanitation projects. It is expected that participation in the project will also empower women and increase their involvement in community-based projects.

Currently, WaterCredit is offered in India, Bangladesh, Uganda, and Kenya and the average loan size is $120. The project targets the poorest populations because they tend to pay the highest price for vended water and lack access to safe drinking water. WaterCredit provides loans to finance household water and sewerage connections, toilets, sinks tube wells and water harvesting equipment.

Read the full article about microfinance in water and sanitation systems at WASHfunders.