Changes

For example where microfinance is used to support household sanitation, there is an interest cost attached to the borrowing. Or for instance small -scale independent water providers have to recover the cost of a loan from a bank in order to pay for drilling a borehole and building an overhead tank. The cost of the interest on a loan is the cost of capital. This is usually added to the daily rent that water carriers, carters or tanker operators pay to the owners of their carts or tankers. Such small -scale enterprises also need to make enough profit to cover the cost of their own capital invested, in addition to the interest they pay on loans. The cost of capital may not be apparent to customers as it is wrapped up in the overall charge.