The eMicrocredit Model

Partners are individuals and organizations - located on the ground with critical knowledge of the local population and years of experience - we have partnered with to manage and administer the individual loans.

• eMicrocredit enables organizations to raise debt capital directly from social investors via the Internet.

• eMicrocredit provides partner companies 0% interest debt capital in exchange for client impact transparency on the internet.

• Partner companies on-lend this capital at prevailing interest rates and keep the interest income.

• Losses arising from client default are borne by eMicrocredit's social investor.

Loans: Partner Companies post client profiles online on eMicrocredit. Client profiles are funded by social investors online.

Funds Transfer: eMicrocredit aggregates the 0% interest USD capital and wires it to the Partner Company on a monthly basis.

Reporting: eMicrocredit's social investors provide subsidized capital in exchange for impact transparency. Partner Companies must report on the social impact of clients at least once per loan term.

Repayment: eMicrocredit automatically reports payments based on expected client repayment schedule. A Partner Company needs to report when a payment is off schedule. eMicrocredit automatically nets out reported repayments from new funds originated on the website each month, reducing the need for organizations to wire funds back to eMicrocredit.

• 0% Interest debt capital

• Easy to pilot: Once approved, your organization can begin a eMicrocredit pilot in less than a week

• Low administrative cost: Factoring MFI staff administrative costs, data indicates this cost to be less than 1% as a factor of capital raised

0% Interest rate and eMicrocredit charges – eMicrocredit passes 100% of the funds lent via social investors online. eMicrocredit supports its low cost internet operations by charging social investors optional fees.

0.2-2% Cost of staff time to post borrower data – The cost of staff time to post and maintain each client profile on eMicrocredit ranges from $1 USD to $10 USD. The average eMicrocredit loan raised per client profile is $500 USD putting the average cost as a factor of the debt capital raised on eMicrocredit to around 0.2% - 2%.

0-1% Total cost of eMicrocredit Capital – For most organizations, eMicrocredit represents the cheapest U.S. dollar debt capital source available.