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Read more about the risks of crowdfunding in our FAQ.
With a loan of EUR 27,600 the organization Guardian is able to provide 238 women with water loans.
Like many rural households, families have been impacted by the water crisis in India. Dependent on the public water supply, they trek many kilometers back and forth, carrying home enough water to fulfill their daily needs.
In households like theirs, children often miss out on school, having to help their mothers carry water. Often, unable to gather enough fresh water, their families are prey to illness. Water is a fundamental human need. Each person on Earth requires at least 20 to 50 liters of clean, safe water a day for drinking, cooking, and simply keeping themselves clean. Rural Tiruchirappalli in Tamil Nadu is an area where people have very little to no access to clean drinking water.
Guardian is India's first and only microfinance institution with an exclusive focus on water and sanitation. Empowered by this drive, hundreds of mothers have come forward, sought these water loans, and gained access to clean drinking water within their homes. They now enjoy better health, productivity, and a good amount of savings. Despite these measures, there are scores of underprivileged women, children, and families in rural Tiruchirappalli for whom access to clean drinking water is still far-fetched. They are looking for a similar chance to fix their own water crisis and uplift their living conditions.
Milaap, through its partnership with Guardian, is going to facilitate loans to 238 women and their families to help them gain access to safe and hygienic source of water. Local partner Milaap provides a loan to Guardian which must be repaid within 24 months.
| Company name | Guardian 6 |
| CEO | Senthil Kumar |
| Founded | 2007-01-01 |
| Location | Tamil Nadu |
| Sector | Financial services |
| Turnover | €497,351.31 |
| Employees | 63 |
The risk level depends on the specific project. Local partners cover the risk of currency exchange rates and defaults on Local Partner investments. They do this by maintaining financial reserves for this purpose. Aside from that, there is an option to claim their equity if needed. While these measures are intended to minimize the risk to investors, our local partners face risks of their own that could affect their ability to secure your investment. These include - bankruptcy - currency exchange rates - fraud - operational risks - political and regulatory changes - natural disasters or epidemics.
With direct investments, risks of default are not covered. As the risks are higher, so are the interest rates.
There is also some operational risk at Lendahand. An example might be that Lendahand is unable to find shareholders to finance their activities. In such a case, Lendahand will handle outstanding investments at the best of its ability. At the same time, our ability to legally address non-payment from local partners becomes understandably difficult.
Every local partner must share our social mission to ensure local entrepreneurs can access affordable financing, allowing them to grow their business. Local partners must also have a 'track record'; they must have proven themselves as a reliable credit provider for SMEs.
For instance, this means a solid credit portfolio and enough buffers and equity to compensate for unexpected downturns. We also check the organizational structure of the portfolio company and how robust their (internal) procedures are. Finally, the investments must be in proportion to the total balance of that portfolio company. A healthy balance between effectuating influence and being independent is crucial. If you would like to receive more information on the financial indicators we employ, please contact us via info@lendahand.com.
When currency exchange risks become too high for a local partner, Lendahand will urge the local partner to cover these risks. In some scenarios, the local partner is contractually obliged to comply with these demands.
Lendahand always conducts due diligence when companies request funding. The results can be downloaded on the project detail page. However, this analysis is not investing advice.
Usually we don't. Local partners take care of the repayment, even if (some) entrepreneurs are unable to do so themselves. If the local partner is for some reason unable to repay then there is a chance of partial or full loss of your money. For this reason, Lendahand only selects financially solid partners based on strict criteria.
For most direct investments, there is no guarantee. However, currency risks are covered.
Sometimes, and only for some direct investments in Africa, our partner Sida, part of the Swedish government, will guarantee a maximum of 50%. Read here more about guarantees with Sida. Projects with Sida guarantees are indicated explicitly on the project page.
Yes. The Dutch Authority Financial Markets (AFM) has provided Hands-on B.V. (with trade name 'Lendahand') in September 2016 with an investment firm license in accordance with article 2:96 of the Financial Markets Supervision Act (Wft). Placing orders on Lendahand's website is therefore an AFM regulated activity. Lendahand also meets its minimum capital requirements following its license as required by De Nederlandsche Bank (DNB).
Lendahand uses an exemption from an approved prospectus that is available up to EUR 5 Million per year.
We adhere to strict safety requirements concerning private and payment details. All sensitive data is sent through an encrypted connection (https). Also, information is stored (encrypted) in a secured facility provided by AWS: the world’s largest hosting service. A secured connection and multi-factor authentication can only retrieve customer documents.
Our local partners and companies bear the exchange rate risks. We settle the investments, redemptions, and interest payments in euro.
If Hands-On BV (containing the brand name Lendahand) went bankrupt, trades between Lendahand and payment service provider Intersolve EGI would cease immediately. Intersolve will then transfer the funds in your wallet to your bank account (Note: if at this time the project you have invested in has been fully funded and the money has thus been transferred to the local partner, these funds will not be transferred back to your bank account). Intersolve will then, in consultation with a trustee, handle all repayments between the investors and entrepreneurs until the final repayment of the last project has taken place.
Additionally, Lendahand is part of the investor compensation scheme (ICS). This scheme aims to compensate individuals and small businesses with trusted money and or financial instruments (such as notes or options) to a licensed bank, an investment firm, or a financial institution. In case the financial firm is unable to meet its obligations arising from claims related to the investment service (in other words, if Hands-On BV is not keeping track of the acquired notes by investors in the Wge depot correctly). The ICS guarantees an amount of up to €20.000 per individual. For more information, go to www.toezicht.dnb.nl/en/2/50-202210
| Portfolio Overview | €7,843,392 |
| Equity / total assets | 50.00% |
| Write-off ratio last 12 months | 0.00% |
| % investment amount in arrears (>90 days) | 0.00% |
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