Guarantors
E&O’s Guarantors are high net-worth individuals or organizations with strong social missions who enable our initiatives through lines of credit.
From these individual committed lines of credit, a US bank establishes a consolidated line of credit for E&O. These funds never leave the Guarantors account. Making use of this line of credit, E&O provides an interest-bearing loan to an MFI partner at market price. E&O only provides loans to MFIs offering or planning to offer housing microfinance products and meet E&O’s MFI requirements. The funding spread covers our minimal administrative costs, and supports our social programs that are not self-sustainable: the preventative healthcare outreach and education initiatives.
It’s a simple and transparent process that requires no investment and no expenditures on the Guarantor's part. The risk is low. In the unlikely case of an MFI loan default, the burden of the resulting loss is shared by all Guarantors and is tax-deductible, minimizing its impact.
