To cover exchange rate fluctuations between when the loan is first placed on the site and the loan being fulfilled and sent abroad, a 10% buffer is added to the loan being sought by the entrepreneur. The loan amount on the lendwithcare.org website includes this 10% buffer.
The unused portion of the 10% buffer is repaid to you, the lender, as the first repayment on the repayment schedule. This repayment may have decreased against the amount scheduled due to fluctuations in the exchange rate. If there was a gain on the exchange rate this will be retained by CARE to help with our operational costs.
The remaining instalments on the repayment schedule are the repayments of the loan provided to the Entrepreneur.
By managing loans in this way, the entrepreneur receives their full loan request and is guarded by you and other lenders from currency exchange rate fluctuations that could damage the entrepreneur’s plans entirely and lead them into difficulty.