The Water Credit initiative has recently been launched in India to provide individuals and communities with small loans for water connectivity. The initiative has been funded by the organization, Water.org, to help communities “address their own water and sanitation needs.” By partnering with MFIs and NGOs, the Water Credit Initiative has increased access to clean, safe water.
The Water Credit Initiative has been funded by social entrepreneur Gary White and Hollywood Actor Matt Damon through their organisation Water.org which has invested US$ 2.2 million in Water Creditprograms.. Water credit applies the principles of microfinance to the water and sanitation sector in developing countries. By making small loans to individuals and communities who do not have access tocredit, Water-Credit empowers people to address their own water and sanitation needs instead of depending on government funds and charity.
Today it is estimated that nearly 1 billion people are in need of access to safe water and over 2.5 billion do not have access to even a simple latrine. The current grant driven financial models and government resources that are available are insufficient to meet these problems. Water Credit models use local resources and accelerate natural market processes, ultimately serving more people much quicker.
In the below video Water.org co-founders Gary White and Matt Damon visit a project site in Tiruchirapalli in Tamil Nadu,India and discuss the success of the local WaterCredit project.