Consumer Financing

Consumer Financing

The poor suffer the most from the energy-poverty burden, and are often forced to use unhealthy and dangerous forms of household energy. With the introduction of clean energy technologies such as clean cookstoves and solar lanterns, the poor are finding it most difficult to access these solutions due to low purchasing power. They also are locked out of conventional financial services. These individuals lack collateral, steady employment and a verifiable credit history and therefore cannot meet even the most minimal qualifications to gain access to traditional credit.

Multi-Link has therefore introduced an innovative consumer financing mechanism dubbed ‘Multi-Link Angaza’ to enable the poor access a variety of clean energy technologies.

Angaza Energy Loans

These are loans offered to members of a self-selected group (most of which are formed with different objectives) which has been approved into Multi-Link Angaza Scheme for acquisition of household energy technologies. The groups must have a minimum of 10 and a maximum of 30 members, be registered and must have been operating for at least a year. Before the first loans are disbursed the group is trained by our training officers. Each group member is expected to contribute to the loan guarantee fund which secures the commitment of the group. Neither formal collateral nor a credit history is required to qualify for the loan, but it is co-guaranteed by members.