How do you ensure that the entrepreneur gets their loan?

CARE works with Microfinance Institutions (MFI) in US Dollars who then lend to entrepreneurs in local currencies. Loans to entrepreneurs therefore have to be translated from GB Pounds and this is done using a GB Pounds to US Dollar rate that moves daily.

To cover any exchange differences between when the loan is put on the site and then sent abroad, and to ensure that the MFI and then the entrepreneur receives their full loan request, there is a 10% buffer on the loan to cover exchange rate fluctuations. Any part of the buffer that is not absorbed by the exchange rate fluctuations between the loan being raised and the loan being sent abroad is repaid to you. This is the first repayment on the repayment schedule.


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Next: Who bears the exchange rate risk? >

Your donations are now doubled!
Your donations are now doubled!

Your donation doubled

From now until 22nd April, your donations will be doubled by the UK government — with the matched funding going to support women farmers in Tanzania so they can increase their income and grow their business as part of CARE's Help Her Live, Learn and Earn campaign.

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