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Lesson
Subsidized credit when sourced from a grant may be used as an immediate and emergency response to the financing needs of those severely affected by disaster. However, it is not sustainable over time when grant funds are no longer available. It is basically a stop gap measure in an emergency. There are costs to the delivery of financial services that need to be considered in product pricing to help financial institutions sustain their operations and continue serving targeted households. These institutions need to price their loan products to allow for full cost recovery.

Project Number: 49202-001
Project Name: Disaster Risk Reduction and Livelihood Restoration for Earthquake-Affected Communities
Report Date: