Green microcredits to protect the environment
Microcredits are the only financing alternative for many people, either in a difficult economic situation, or advocates of innovative projects that fail to attract the interest of the large banks.
Entrepreneurs know first-hand what we are talking about, since they are often immersed in a spiral of lack of financing by not meeting the strict requirements imposed by traditional banks in granting loans, especially those who bet on ideas or a priori excluded social sectors. And the fact is that the credit system generally bets on "winning horses" that tend towards conventionalism ... Until now.
The new "green microcredits", mini-loans that try to promote the use of renewable energy by disadvantaged populations, represent a breath of fresh air for those who wish to guarantee access for these people to new forms of energy, more sustainable and healthy, more fair and respectful.
Today Tuesday, June 5, World Environment Day , we reveal some keys to the success of these credits designed to provide financial support to eco-efficient ideas in developing or emerging countries.
What are green microcredits?
Green microcredits are quick loans of small amounts that try to finance the acquisition, by people excluded from the traditional financial system, of low-energy consumption equipment so that they can limit their spending, restrict the pollution index, increase their health and safety , but above all, create and develop a business that has cheap energy in order to reduce costs and increase profits.
Who can apply for a green microcredit?
This type of credit is aimed at disadvantaged people who live in developing countries, usually in rural communities, and who want to start a business.
Where can they be requested?
Entities such as ADA , a non-governmental organization approved and co-financed by the Luxembourg Development Cooperation and Humanitarian Action, and dedicated to “inclusive finance” is a good example of the type of entity that offers this type of financial support.
A case of success: FINCA and its SHS
FINCA , an American foundation specializing in microcredits, created a project ten years ago to enable self-sufficiency of electricity through what it calls "Solar-Home-Systems" (SHS), photovoltaic installations that guarantee the autonomy of the electricity supply without the need for connection to the network. Today, FINCA finances projects like this in different villages in Uganda. An agent, a financial expert, of FINCA individually negotiates the conditions of repayment of the loan. The monthly fee should never exceed the amount that a household would otherwise spend on the usual means of supplying energy and obtaining light, such as kerosene, candles and batteries. To facilitate the success of the project, a private company takes care of the installation of the equipment and its maintenance.