This paper details a 13-month pilot sanitation financing program that addresses the challenge of reaching low-income households with improved sanitation solutions.
- Many households, especially those with lower income levels, cite an inability to pay the up-front costs of a latrine as a major barrier to accessing improved sanitation.
- Microfinance institutions (MFIs) with good lending practices could resonably expect low default rates and high loan self-sufficiency.
- A total of 1,994 loans, amounting to $126,125, were disbursed during the pilot program. The MFIs collected $10,428 through loan interest, covering the costs of offering the loans.