The impact of Lendahand

funding gap emerging markets
Invest with tangible impact

The place where you're born is beyond your control. The majority of people on earth are born in countries where the quality of life is lower than in the wealthy West. One of the main reasons for this lower quality of life is the lack of affordable credit. In other words: access to fair loans. A fair loan is essential for anyone with the ambition to achieve something in life. In the impact world, the lack of credit in emerging countries is referred to as the financing gap. The IFC estimates that this gap amounts to around $8 trillion.

By investing with Lendahand, you contribute to closing this gap. Our investors have collectively provided approximately €200 million in fair loans. This has translated into 1.3 million people gaining the opportunity to realize their ambitions. One of these people is Carmen from Mexico. She weaves colorful baskets, but her sales were limited to her village, preventing her from building a stable income. Thanks to a loan from Lendahand, she was able to expand her market reach, which increased her income. She has now repaid her loan and built a financial buffer. This is the power of impact investing: creating real opportunities for entrepreneurs like Carmen.

How do we ensure that our loans make an impact?

Lendahand does not provide loans directly to local entrepreneurs but to socially driven financial institutions with strong knowledge of the region. The amount loaned to such an institution is then divided into smaller (micro)loans. How do we determine whether a financial institution is socially driven and therefore impactful?

We’ve established several clear criteria. For example, we evaluate the interest rates offered to entrepreneurs, the profits of the institution, and the salaries of its management. Our impact committee assesses whether an institution meets these criteria.

What types of impact are there?

The various projects on our website create diverse forms of impact. One project might focus on poverty alleviation through microloans, while another emphasizes sustainability or gender equality.

On our project page, you can easily identify the type of impact a project creates using the impact labels below.

Invest with impact and confidence

By Lynn Hamerlinck on 5 July 2024

Trees has been investing through Lendahand for years: ‘It does good for the world as well as for my wallet. Social investing is a real win-win for me!’ Find out how her investments are making positive change in emerging markets and read more about her experience with Lendahand.

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