Lend for water and sanitation: Lend for change....

Lend for water and sanitation: Lend for change....

Happiness has a new address says an advertisement for home loans by a renowned bank. Now drive home with happiness says another bank . Celebrate the festive season and shop till you drop says one more! All these slogans are used by banks to attract consumers for lending loans whether for housing, vehicles, various consumer goods. But how many of us have heard of loans for financing toilets, water and sanitation? Not even a few, in fact a lot of them would be surprised to know that banks could possibly lend for construction of toilets, sanitation and water.
However this is what Water.org, a renowned organisation working in over 13 countries of the world has been doing for over ten years. In fact the founders Gary White and Matt Daman even came forward with the innovative idea of water credit bringing in small, affordable loans and expert resources to make household water and sanitation solutions a reality.
This has also made it possible for them to reach over 16 million people throughout the world. In India they have been working since 2005, in 12 states. With support from the World Bank and other institutions they have reached over 8 million people, disbursed over 2 million loans amounting to almost $ 421million.
MSRLM works for the empowerment of women through community based organisations like the self help groups. It has more than 0.35 million self help groups and over 3.5 million households associated with it. The SHGs of MSRLM follow the Dasha Sutri, the ten cardinal principles of regular meetings, savings, internal lending, repayment of loans and writing books of accounts along with the social goals like emphasising on health, nutrtion and sanitation, education, taking part in Panchayat Raj Institutions, accessing government schemes and sustainable livelihoods. As a part of the Dasha Sutra, water and sanitation are an important aspect among the SHGs. The sixth goal under the SDGs talks about Clean Water and Sanitation.
Water org has been working with various institutions including Self-help groups. An MoU was therefore signed between the two to facilitate the propagation of clean water and sanitation through self groups of MSRLM. The emphasis is on advocacy for lending for a change, lending to facilitate water and sanitation and more specifically for toilets.
The India Water Credit Forum is a step towards that direction to enable collaboration between various stakeholders from the water, sanitation, public and private sectors. It would facilitate learnings about access to affordable financing for safe water and sanitation in India. It would also
explore the new innovations in WSS financing that will move India toward open defecation free sustainability.
Drinking water supply and sanitation in India continue to be inadequate, despite longstanding efforts by the government and communities at improving coverage. The level of investment in water and sanitation, may be low by international standards but has certainly increased in size during the 2000s. For example, in 1980 rural sanitation coverage was estimated at 1% and reached 65% in 2017. Also, access to improved sources of water by Indians has also increased from 72% in 1990 to 88% in 2008. However still many Indians live without adequate sanitation.
The governments efforts through programmes like the Total Sanitation Campaign did initiate a change. The Swaccha Bharat Abhiyaan brought about tremendous transformation with many cities and villages becoming ODF. The amount of Rs. 12,000/- given by the government to build toilets is often criticised and also discussed as a number crunching approach. The fact is that this amount is a grant to promote and encourage construction of the toilet. The individual may add on to the amount if they wish to make it better or include a bathroom. The amount given by the government is sufficient for construction of a basic toilet. Also the drive taken during this period enabled promotion of good hygiene and sanitation. The individual must also be responsive in making quality construction and using it thereafter. The government can only facilitate and motivate. It is the individual who has to take ut forward thereafter.
Looking at the efforts made by Water.org MSRLM entered into an Mou with them to propagate lending for change, lending for sanitation.
A beginning has been made by creating awareness among people for accessing loans to make toilets. Over 200 apllications have been received for loans for sanitation, 93 have been sanctioned and about 60 have been disbursed amounting to Rs. 16 lakhs. That itself is a good beginning.
It has unleashed the power of demand generation in creating awareness about credit financing for WASH.
The support provided by UNICEF, Water.org, the SHG Women and the Water Alliance for designing WASH Financial IEC, training the master trainers, and providing field support has been extremely encouraging.
Looking at the numbers of SHGs, women and families the scale and market potential for financing of toilets through the SHGs of MSRLM is phenomenal. Added to it is the
strong track record of timely repayment of loans by SHGs.
These aspects were highlighted to the practitioners and bankers at the Water Credit Forum held recently at Delhi.
The banks needed to recognise loans for sanitation as capital gains and change their outlook towards financing water and sanitation. Quality sanitation will lead to good health and in turn to better livelihoods and better profits which will ultimately reach the banks. They must therefore be more open to lend for sanitation and Water. They must visualise that construction of toilet is not a loan for consumption but for enhancement of life. Therefore it is as important as a loan for a house and certainly more important than loans for car, jewellery or other goods for consumption specially for rural households wanting to improve the quality of their lives.
The Reserve Bank of India has already widened the scope for loans to SHGs and has included financing products for toilets, bathrooms, drinking water pipeline, water filtration and water harvesting in it.
An idea which had been initiated ten years ago is now on the threshold to facilitate change through sanitation. Banks need to step up, understand the need for deepening financial linkages in sanitation. They must neither hesitate in designing new products for the same nor in marketing them wisely through advertising. Instead of lending for the routine homes, cars, business and markets, they must lend for sanitation. They must lend for change.

R.Vimala, IAS, CEO MSRLM