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Micro Credit:

Micro Credit is the lending of small loans for as little as $10 to the working poor for specific goals. Since the borrowers are people who lack collateral, employment and credit history, the only other option they have is to borrow from local moneylenders at 50% - 300% interest rates. As such they can seldom get ahead. Together we can make it possible for poor families to build their businesses and work towards a better future. Loan amounts are typically between $40 and $200 and are given by local organizations called Micro Finance Institutions (MFIs). These loans are repaid in weekly installments over six to nine months. We use these MFIs to distribute the loans as well as to collect the money when loans are due. Our borrowers thereby establish credit which allows them to receive larger loans. They often form community groups that guarantee each other's loans, and our MFIs require this kind of an established accountability. This is our guarantee to you the lender that your money will return.

"Around the globe, there are 2.8 billion people, or approximately 569 million families, who are considered poor, living on less that $2 per day. Of these, 1.2 billion people live in abject poverty. Despite recognition of microfinance as a proven tool, fewer than 18% of the world's poorest households have access to financial services." ~Jennifer Meehan, Tapping Financial Markets for Microfinance, Grameen Foundation. USA, Oct. 2004.

How Our Micro Lending Works:

-Lenders choose a prospective borrower on our site and provide their support via Paypal. (These are profiles that have been provided by our partner MFIs.) -Our Micro Finance Institutes (MFIs) collect the payments on the loan, and the officer sends us brief e-mails to update the status of the loan and the business. -In 6 to 9 months, depending on the loan time, the loan is repaid in full with a 95% success rate (according to figures from the Grameen Foundation). Then the money comes back to you. -Most importantly, you the lender can opt to put the money back into another loan to renew the cycle.

Why is our success rate so high?

Our MFIs choose which local borrowers to upload on our site. They only pick groups that have a high history of repaying their debt and have existed in a self-governing state for a minimum of one year to ensure their reliability. Likewise, we only partner with MFIs who have accountable and transparent financial records. Their peer rating system helps bolster their reputation as a credible institution. The local groups and the MFIs act as guarantors to one another, holding each other accountable for repaying the loans. If one group defaults, both have a harder time receiving loans in the future. Our loans are given without collateral; they are based on dignity and trust. Thus far h3o loans have all been repaid in full.

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h3o does not charge the clients for the loans. We need your support to carry the administrative overhead of providing these loans. Please make a donation to help h3o.
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In the spirit of doing our part to alleviate poverty, h3o offers this website and its contents to the public domain for informational purposes. We do not claim any copyright to this website or its contents. Permission to reproduce, use and distribute the Resource Documents on this site is granted.

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