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A Water and Sanitation Loan is a type of microloan provided to households or communities to improve access to clean drinking water and proper sanitation facilities. These loans help in building or upgrading toilets, installing water connections, constructing drainage systems, and purchasing water storage solutions. The aim is to enhance health, hygiene, and quality of life, particularly in underserved rural and urban areas.
Designed specifically for water supply and sanitation infrastructure like toilets, taps, and water tanks.
Generally low-value loans, making them affordable and easily repayable for low-income households.
Offered at concessional rates through banks, microfinance institutions, or NGOs, often supported by government or development programs.
Tailored repayment terms aligned with the borrower’s income cycle or ability to pay.
The main objective of a Water and Sanitation Loan is to ensure safe, sustainable, and inclusive access to basic water and sanitation services. By empowering individuals to invest in hygiene infrastructure, these loans help reduce health risks, promote dignity (especially for women and children), and support the goal of cleaner, healthier communities.
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Joint Liability Group (JLG) loans provide financial support to small and marginal farmers, landless laborers, and rural entrepreneurs by enabling access to credit without the need for collateral. These loans help cover agricultural investments, small business needs, and other income-generating activities, ensuring financial inclusion and economic stability in rural communities.
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