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? >

Stair climb challenge

Join the ultimate stair climb challenge in London on 14 April 2018 at the iconic Leadenhall Building , aka The Cheesegrater. This is a unique opportunity for you to join together with other lenders and raise money for Lendwithcare with the this amazing view of London as your reward at the top.

Lendwithcare shop

As well as making loans, you can also support entrepreneurs in developing countries by purchasing some of the beautiful products they make.

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