Borrowers pay interest to the Impact Catalysts who administer loans and collect repayments in their local communities. From this, ShareChange receives a small fee from the Impact Catalysts to help cover our administrative costs.

Why do Impact Catalysts receive the interest?

Allowing these organizations to collect interest helps local economies to develop self-sufficient, inclusive financial systems!

✅ Our goal is for Impact Catalysts, the microfinance organizations, to become self-sufficient, where they no longer need funds from ShareChange!

Microfinance organizations have high costs when it comes to administering micro-loans. One of the reasons that so many people are financially excluded from traditional systems is the high cost of microfinance services, where people need loans as small as $100.

Providing Microfinance Organizations with funding and allowing them to collect interest helps to support their operational efficiency, meaning they can more quickly scale to:

  • Lower their interest rates over time!
  • Serve more people in need.