Revolving loans (also called microcredit or village banking) allow low-income people, usually women, to borrow money, animals, or equipment to facilitate small businesses. Funds are loaned to beneficiaries, repaid, and loaned again, hopefully in perpetuity.
Up to US$10,000 of grant funds per credit group may be used as revolving loan capital, and one grant may support multiple credit groups. A credit group (also called a village bank) consists of 10 to 30 borrowers, usually women, who are organized, educated, and trained in the basics of saving, credit, and entrepreneurship and who guarantee each other’s loans to ensure repayment to the fund.
All revolving loan fund grant applications undergo an initial review by a member of the Humanitarian Grants Cadre of Technical Advisers.
For more information, download a revolving loan fund supplement and agreement form (PDF) and the Revolving Loan Fund Guide (PDF).
All revolving loan projects must submit a report supplement (PDF).