Question
Q14. With reference to ‘WaterCredit’, consider the following statements:
1. It puts microfinance tools to work in the water and sanitation sector.
2. It is a global initiative launched under the aegis of the World Health Organization and the World Bank.
3. It aims to enable the poor people to meet their water needs without depending on subsidies.
Which of the statements given above are correct?
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
Answer: C
Detailed Explanation
• The Water Credit Initiative has been funded by social entrepreneur Gary White and Hollywood Actor Matt Damon through their organization Water.org which has invested US$ 2.2 million in Water Credit programs.
• 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 to credit, Water-Credit empowers people to address their own water and sanitation needs instead of depending on government funds and charity.
• WaterCredit helps bring small loans to those who need access to affordable financing and expert resources to make household water and toilet solutions a reality.
How it works
• It identifies a region where people need access to water and sanitation and that is ready for a microfinance solution.
• It partners with carefully selected institutions to provide affordable financing for water and sanitation to families in need.
• These microfinance partners establish water and sanitation loans in their portfolio of offerings. It supports them by providing technical assistance, connections and resources to get them started.
• People in need use these small, affordable loans to put a tap or toilet in their homes and access local resources to do the work. It enables poor households to meet their water and sanitation needs without depending on subsidies.
• Every repaid loan can be lent to another family in need of safe water or sanitation.
