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Good potential as people cannot afford paying high investment. Results of loan schemes specifically for sanitation are mixed if the demand for sanitation is low (sometimes poor repayment) but work better for broader schemes (house improvements). Instalment payments make capital investments easier for the poor. The vulnerable poor, (the poorest people) need additional support because they may not be reached (http://www.williams.edu/Economics/neudc/papers/What%20to%20Expect%20from%20Development%20NGOs%20July%209.pdf). Micro credit schemes exist in different contexts, often through local NGOs or with NGOs acting as a guarantor. Cases on sanitation loans show positive repayments in Honduras, but considerable back-logs in Ghana ( http://www.lboro.ac.uk/well//resources/fact-sheets/fact-sheets-htm/mcfs.htm ). High potential because it may be expected that attention for sanitation will create larger market
Loans made available to municipalities
Many municipalities are indebted by loans for water and sanitation facilities for which they pay from regular budget and too a much lesser extent from users contributions. Potential relates to changing this practice to a sound repayment on basis of users fees
Provision of small-scale loans for investment in water supply systems has also been successfully implemented in peri-urban areas of Cochabamba in Bolivia, where the micro-credit agency CIDRE has joined forces with a private sector company, the municipal government, the utility and community organizations to expand infrastructure (http://www.aguatuya.com/html/our_partners.html ). High potential for rural areas without banking facilities and areas with good social cohesion
Used at community level
Interest in this concept is increasing and good results are reported for example from Anhui province in China, particularly where community leaders were involved (http://www.unicef.org/evaldatabase/index_14260.html). In Nepal the government does not provide subsidies for sanitation but has established revolving funds which the community can keep if they have obtained 100% coverage (http://www.livelihoods.org/hot_topics/docs/CLTS_update06.pdf). Requires transparent management. High potential particularly in homogenous communities aiming at 100 percent sanitation
== Revenue financed expansion ==