What to know about this Lending Partner
Status update — February 28, 2020
Kiva and TerraClear Development have agreed to end their partnership after nearly 6 years and more than $1.2M USD in loans raised. This partner has repaid its outstanding balance to Kiva in full, and these funds have been distributed to lenders. We thank TerraClear Development for the years of collaboration and wish them success in their future endeavors.
Status update — August 18, 2017
Kiva recently re-assessed the level of risk associated with loans from this Lending Partner. During this process, our analysts gathered updated operational and financial information about the institution, spoke with key members of the staff and analyzed the Lending Partner’s loan products. As a result, TerraClear's risk rating is now listed as 0.5 stars instead of 1 star. The primary reason for this change in rating is the worsening of their financial situation.
Status update — September 15, 2016
In early 2016, TerraClear faced unexpected operational difficulties that resulted in cash flow issues at the organization. They have since revamped their credit processes and agreed upon a repayment plan with Kiva, where the organization will pay off the outstanding balance over a 12 month period, or possibly earlier if circumstances permit. So far they are keeping track with the plan and Kiva is confident this partner will repay the amount owed to lenders in time, thus reducing their delinquency rate on Kiva. Kiva has allowed TerraClear to continue to fundraise for new loans as they work to repay, and continues to actively monitor the situation.
Partner description:
TerraClear is a for-profit social enterprise that focuses on overcoming barriers to clean water in Laos through the production and distribution of ceramic water purifiers. More than 30% of the population in Laos lack access to clean drinking water. Problems of poor water and sanitation are particularly prevalent in rural portions of the country where distribution of clean water is limited and expensive.
TerraClear sells these water purifiers throughout the country and aims to give low-income communities increased access to the product.
With Kiva financing, TerraClear is expanding its services and distributing more clean water purifiers nationwide.
A Unique Lending Approach:
Trained salespeople introduce TerraClear water purifiers during village meetings. At the village meetings the sales people moderate a discussion on the health implications of drinking contaminated water, the cost of purifying unhealthy water via boiling, and the cost of buying clean water in 20 liter bottles. The community then compares these costs versus the cost to purchase a TerraClear water purifier with 2 year warranty. TerraClear sales people offer a financing option for members of the community who cannot afford to pay the upfront cost of the product - these are individuals/groups featured on Kiva’s website.
With Kiva’s funding, TerraClear can meet the increasing demand for their water purifiers and expand access to clean water in rural communities.