https://energypedia.info/index.php?title=Revolving_Funds&feed=atom&action=historyRevolving Funds - Revision history2024-03-28T18:04:17ZRevision history for this page on the wikiMediaWiki 1.35.8https://energypedia.info/index.php?title=Revolving_Funds&diff=61615&oldid=prevFungai Cecilia Sandamu at 12:52, 12 August 20132013-08-12T12:52:34Z<p></p>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">[[Portal:Financing and Funding|► Back to Financing and Funding Portal]]<br/></ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>= Overview<br/> =</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>= Overview<br/> =</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><del class="diffchange diffchange-inline"><div><span></del>The idea behind a Revolving Fund is that an organisation (or sometimes an individual) has a reserve of money (the Fund) which is used to lend to one or more borrowers. Over a given period of time, the borrower is expected to repay the original sum that restocks the fund. Usually, an additional sum is charged (interest) to the borrower that acts as a fee for providing the service (administrative costs) and helps to protect the fund from being depleted. Factors contributing to depletion can include inflation, non-payments and the cost to the lender of getting outside finance.<del class="diffchange diffchange-inline"></span></div><div><span></del>The concept of Revolving Funds is often used in developing countries to provide affordable access to credit for those wishing to borrow money for anything from buying food and productive inputs, to businesses and services.</<del class="diffchange diffchange-inline">span></div><div><span</del>>Differences between formal and informal revolving funds<del class="diffchange diffchange-inline"></span></div><div><span></del>The main differences between an informal rotating credit scheme (a co-operative for example) and a formal revolving fund, lies in the source of the initial fund, the scale of lending and the structure of the credit management.</<del class="diffchange diffchange-inline">span</del>></div><div></div></div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>The idea behind a Revolving Fund is that an organisation (or sometimes an individual) has a reserve of money (the Fund) which is used to lend to one or more borrowers. Over a given period of time, the borrower is expected to repay the original sum that restocks the fund. Usually, an additional sum is charged (interest) to the borrower that acts as a fee for providing the service (administrative costs) and helps to protect the fund from being depleted. Factors contributing to depletion can include inflation, non-payments and the cost to the lender of getting outside finance.</div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>The concept of Revolving Funds is often used in developing countries to provide affordable access to credit for those wishing to borrow money for anything from buying food and productive inputs, to businesses and services.<<ins class="diffchange diffchange-inline">br</ins>/>Differences between formal and informal revolving funds<ins class="diffchange diffchange-inline">.</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>The main differences between an informal rotating credit scheme (a co-operative for example) and a formal revolving fund, lies in the source of the initial fund, the scale of lending and the structure of the credit management.</div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins class="diffchange diffchange-inline"><div></ins><<ins class="diffchange diffchange-inline">br</ins>/></div><div></div></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>= <span>Informal Funds</span><br/> =</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>= <span>Informal Funds</span><br/> =</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><del class="diffchange diffchange-inline"><div></del><span>A co-operative is an example of an informal revolving fund. Informal funds are usually those found in developing countries at the local or community level, in poor areas where access to formal bank credit is virtually impossible. Members of a group put their savings into a commonly held fund, which is then lent to other members when they need a loan. Informal revolving funds do not usually earn any interest, unlike more formal schemes.</span><del class="diffchange diffchange-inline"></div><div></del><span>An important feature of such schemes is that they depend on social organisation to ensure loans are repaid. Peer or group pressure is a critical aspect of this kind of fund as it is used to ensure repayment, improve understanding between group members and can also be used to strengthen social networks.</span><br/><del class="diffchange diffchange-inline"></div></del><div><br/></div></div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><span>A co-operative is an example of an informal revolving fund. Informal funds are usually those found in developing countries at the local or community level, in poor areas where access to formal bank credit is virtually impossible. Members of a group put their savings into a commonly held fund, which is then lent to other members when they need a loan. Informal revolving funds do not usually earn any interest, unlike more formal schemes.</span></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><span>An important feature of such schemes is that they depend on social organisation to ensure loans are repaid. Peer or group pressure is a critical aspect of this kind of fund as it is used to ensure repayment, improve understanding between group members and can also be used to strengthen social networks.</span><br/></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><div><br/></div></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>= <span>Formal Funds</span><br/> =</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>= <span>Formal Funds</span><br/> =</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><del class="diffchange diffchange-inline"><div></del><span>Whilst informal revolving funds are based on community savings, a formal revolving fund usually uses 'seed' money from an outside organisation or agency. The capital fund is managed by a local organisation or NGO and not the community themselves.</span><br/><del class="diffchange diffchange-inline"></div><div></del><span>The seed money is used to pay for the operational structure (buildings, office equipment and vehicles for example) and also to loan money to many small borrowers. Repayments by the original borrowers over an agreed period of time, puts money back into the fund for other people to borrow. If managed well, revolving funds are an excellent means of making affordable credit available to the poor and – with a small amount of capital – can help benefit many people.</span><del class="diffchange diffchange-inline"></div><div></div><div></del><span>Nota bene: The concept of formal revolving funds has recently been replaced with the concept of micro-finance, which incorporates many different elements of providing small amounts of money to a large number of people.</span><br/><del class="diffchange diffchange-inline"></div></del><div><br/></div><div></div></div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><span>Whilst informal revolving funds are based on community savings, a formal revolving fund usually uses 'seed' money from an outside organisation or agency. The capital fund is managed by a local organisation or NGO and not the community themselves.</span><br/></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><span>The seed money is used to pay for the operational structure (buildings, office equipment and vehicles for example) and also to loan money to many small borrowers. Repayments by the original borrowers over an agreed period of time, puts money back into the fund for other people to borrow. If managed well, revolving funds are an excellent means of making affordable credit available to the poor and – with a small amount of capital – can help benefit many people.</span></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><span>Nota bene: The concept of formal revolving funds has recently been replaced with the concept of micro-finance, which incorporates many different elements of providing small amounts of money to a large number of people.</span><br/></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><div><br/></div><div></div></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>= <span>Revolving Funds – GIZ Reference Projects</span><br/> =</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>= <span>Revolving Funds – GIZ Reference Projects</span><br/> =</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
</table>Fungai Cecilia Sandamuhttps://energypedia.info/index.php?title=Revolving_Funds&diff=58114&oldid=prevFungai Cecilia Sandamu at 07:48, 25 April 20132013-04-25T07:48:25Z<p></p>
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<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">Revision as of 07:48, 25 April 2013</td>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>= Overview<br/> =</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>= Overview<br/> =</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><div><span>The idea behind a Revolving Fund is that an organisation (or sometimes an individual) has a reserve of money (the Fund) which is used to lend to one or more borrowers. Over a given period of time, the borrower is expected to repay the original sum that restocks the fund. Usually, an additional sum is charged (interest) to the borrower that acts as a fee for providing the service (administrative costs) and helps to protect the fund from being depleted. Factors contributing to depletion can include inflation, non-payments and the cost to the lender of getting outside finance.</span></div><div><span>The concept of Revolving Funds is often used in developing countries to provide affordable access to credit for those wishing to borrow money for anything from buying food and productive inputs, to businesses and services.</span></div><div><span>Differences between formal and informal revolving funds</span></div><div><span>The main differences between an informal rotating credit scheme (a co-operative for example) and a formal revolving fund, lies in the source of the initial fund, the scale of lending and the structure of the credit management.</span></div><div><del class="diffchange diffchange-inline">'''&nbsp;'''</del></div></div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><div><span>The idea behind a Revolving Fund is that an organisation (or sometimes an individual) has a reserve of money (the Fund) which is used to lend to one or more borrowers. Over a given period of time, the borrower is expected to repay the original sum that restocks the fund. Usually, an additional sum is charged (interest) to the borrower that acts as a fee for providing the service (administrative costs) and helps to protect the fund from being depleted. Factors contributing to depletion can include inflation, non-payments and the cost to the lender of getting outside finance.</span></div><div><span>The concept of Revolving Funds is often used in developing countries to provide affordable access to credit for those wishing to borrow money for anything from buying food and productive inputs, to businesses and services.</span></div><div><span>Differences between formal and informal revolving funds</span></div><div><span>The main differences between an informal rotating credit scheme (a co-operative for example) and a formal revolving fund, lies in the source of the initial fund, the scale of lending and the structure of the credit management.</span></div><div></div></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>= <span>Informal Funds</span><br/> =</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>= <span>Informal Funds</span><br/> =</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div><div><span>A co-operative is an example of an informal revolving fund. Informal funds are usually those found in developing countries at the local or community level, in poor areas where access to formal bank credit is virtually impossible. Members of a group put their savings into a commonly held fund, which is then lent to other members when they need a loan. Informal revolving funds do not usually earn any interest, unlike more formal schemes.</span></div><div><span>An important feature of such schemes is that they depend on social organisation to ensure loans are repaid. Peer or group pressure is a critical aspect of this kind of fund as it is used to ensure repayment, improve understanding between group members and can also be used to strengthen social networks.</span><br/></div><div><br/></div></div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div><div><span>A co-operative is an example of an informal revolving fund. Informal funds are usually those found in developing countries at the local or community level, in poor areas where access to formal bank credit is virtually impossible. Members of a group put their savings into a commonly held fund, which is then lent to other members when they need a loan. Informal revolving funds do not usually earn any interest, unlike more formal schemes.</span></div><div><span>An important feature of such schemes is that they depend on social organisation to ensure loans are repaid. Peer or group pressure is a critical aspect of this kind of fund as it is used to ensure repayment, improve understanding between group members and can also be used to strengthen social networks.</span><br/></div><div><br/></div></div></td></tr>
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<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*<span>Promotion of an integrated social insurance system for women in the informal sector, India</span></div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*<span>Promotion of an integrated social insurance system for women in the informal sector, India</span></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div><div></div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div><div></div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div> </div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins class="diffchange diffchange-inline"><br/></ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>= References<br/> =</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>= References<br/> =</div></td></tr>
<tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l25" >Line 25:</td>
<td colspan="2" class="diff-lineno">Line 26:</td></tr>
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<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div><div id="ftn1"><div></div></div></div></div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div><div id="ftn1"><div></div></div></div></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;"><br/></ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>[[Category:<del class="diffchange diffchange-inline">Financing,_promotion_schemes_and_subsidies</del>]]</div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>[[Category:<ins class="diffchange diffchange-inline">Financing_and_Funding</ins>]]</div></td></tr>
</table>Fungai Cecilia Sandamuhttps://energypedia.info/index.php?title=Revolving_Funds&diff=49378&oldid=prevWiki Gardener at 14:09, 30 August 20122012-08-30T14:09:07Z<p></p>
<table class="diff diff-contentalign-left diff-editfont-monospace" data-mw="interface">
<col class="diff-marker" />
<col class="diff-content" />
<col class="diff-marker" />
<col class="diff-content" />
<tr class="diff-title" lang="en">
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">← Older revision</td>
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">Revision as of 14:09, 30 August 2012</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l1" >Line 1:</td>
<td colspan="2" class="diff-lineno">Line 1:</td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>= <del class="diffchange diffchange-inline">Introduction </del>=</div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>= <ins class="diffchange diffchange-inline">Overview<br/> </ins>=</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div><div><span>The idea behind a Revolving Fund is that an organisation (or sometimes an individual) has a reserve of money (the Fund) which is used to lend to one or more borrowers. Over a given period of time, the borrower is expected to repay the original sum that restocks the fund. Usually, an additional sum is charged (interest) to the borrower that acts as a fee for providing the service (administrative costs) and helps to protect the fund from being depleted. Factors contributing to depletion can include inflation, non-payments and the cost to the lender of getting outside finance.</span></div><div><span>The concept of Revolving Funds is often used in developing countries to provide affordable access to credit for those wishing to borrow money for anything from buying food and productive inputs, to businesses and services.</span></div><div><span>Differences between formal and informal revolving funds</span></div><div><span>The main differences between an informal rotating credit scheme (a co-operative for example) and a formal revolving fund, lies in the source of the initial fund, the scale of lending and the structure of the credit management.</span></div><div>'''&nbsp;'''</div></div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div><div><span>The idea behind a Revolving Fund is that an organisation (or sometimes an individual) has a reserve of money (the Fund) which is used to lend to one or more borrowers. Over a given period of time, the borrower is expected to repay the original sum that restocks the fund. Usually, an additional sum is charged (interest) to the borrower that acts as a fee for providing the service (administrative costs) and helps to protect the fund from being depleted. Factors contributing to depletion can include inflation, non-payments and the cost to the lender of getting outside finance.</span></div><div><span>The concept of Revolving Funds is often used in developing countries to provide affordable access to credit for those wishing to borrow money for anything from buying food and productive inputs, to businesses and services.</span></div><div><span>Differences between formal and informal revolving funds</span></div><div><span>The main differences between an informal rotating credit scheme (a co-operative for example) and a formal revolving fund, lies in the source of the initial fund, the scale of lending and the structure of the credit management.</span></div><div>'''&nbsp;'''</div></div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><del class="diffchange diffchange-inline">=</del>= <span>Informal Funds</span> <del class="diffchange diffchange-inline"> =</del>=</div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>= <span>Informal Funds</span><ins class="diffchange diffchange-inline"><br/> </ins>=</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><div><span>A co-operative is an example of an informal revolving fund. Informal funds are usually those found in developing countries at the local or community level, in poor areas where access to formal bank credit is virtually impossible. Members of a group put their savings into a commonly held fund, which is then lent to other members when they need a loan. Informal revolving funds do not usually earn any interest, unlike more formal schemes.</span></div><div><span>An important feature of such schemes is that they depend on social organisation to ensure loans are repaid. Peer or group pressure is a critical aspect of this kind of fund as it is used to ensure repayment, improve understanding between group members and can also be used to strengthen social networks.</span></div></div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><div><span>A co-operative is an example of an informal revolving fund. Informal funds are usually those found in developing countries at the local or community level, in poor areas where access to formal bank credit is virtually impossible. Members of a group put their savings into a commonly held fund, which is then lent to other members when they need a loan. Informal revolving funds do not usually earn any interest, unlike more formal schemes.</span></div><div><span>An important feature of such schemes is that they depend on social organisation to ensure loans are repaid. Peer or group pressure is a critical aspect of this kind of fund as it is used to ensure repayment, improve understanding between group members and can also be used to strengthen social networks.</span<ins class="diffchange diffchange-inline">><br/></div><div><br/</ins>></div></div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><del class="diffchange diffchange-inline">=</del>= <span>Formal Funds</span> <del class="diffchange diffchange-inline"> =</del>=</div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>= <span>Formal Funds</span><ins class="diffchange diffchange-inline"><br/> </ins>=</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><div><span>Whilst informal revolving funds are based on community savings, a formal revolving fund usually uses 'seed' money from an outside organisation or agency. The capital fund is managed by a local organisation or NGO and not the community themselves.</span></div><div><span>The seed money is used to pay for the operational structure (buildings, office equipment and vehicles for example) and also to loan money to many small borrowers. Repayments by the original borrowers over an agreed period of time, puts money back into the fund for other people to borrow. If managed well, revolving funds are an excellent means of making affordable credit available to the poor and – with a small amount of capital – can help benefit many people.</span></div><div></div><div><span>Nota bene: The concept of formal revolving funds has recently been replaced with the concept of micro-finance, which incorporates many different elements of providing small amounts of money to a large number of people.</span></div><div></div></div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><div><span>Whilst informal revolving funds are based on community savings, a formal revolving fund usually uses 'seed' money from an outside organisation or agency. The capital fund is managed by a local organisation or NGO and not the community themselves.</span<ins class="diffchange diffchange-inline">><br/</ins>></div><div><span>The seed money is used to pay for the operational structure (buildings, office equipment and vehicles for example) and also to loan money to many small borrowers. Repayments by the original borrowers over an agreed period of time, puts money back into the fund for other people to borrow. If managed well, revolving funds are an excellent means of making affordable credit available to the poor and – with a small amount of capital – can help benefit many people.</span></div><div></div><div><span>Nota bene: The concept of formal revolving funds has recently been replaced with the concept of micro-finance, which incorporates many different elements of providing small amounts of money to a large number of people.</span<ins class="diffchange diffchange-inline">><br/></div><div><br/</ins>></div><div></div></div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>= <span>Revolving Funds – <del class="diffchange diffchange-inline">GTZ </del>Reference Projects</span> <del class="diffchange diffchange-inline"> </del>=</div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>= <span>Revolving Funds – <ins class="diffchange diffchange-inline">GIZ </ins>Reference Projects</span><ins class="diffchange diffchange-inline"><br/> </ins>=</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>*<span>However, we highlight a couple of the projects and sectors here for easy reference:</span> </div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>*<span>However, we highlight a couple of the projects and sectors here for easy reference:</span></div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>*<span>Establishment of a micro-finance institution (SOCREMO), Mozambique</span> </div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>*<span>Establishment of a micro-finance institution (SOCREMO), Mozambique</span></div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>*<span>Establishment of a rural micro-finance system, Mongolia</span> </div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>*<span>Establishment of a rural micro-finance system, Mongolia</span></div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>*<span>Renewable Energy for rural households, Philippines</span> </div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>*<span>Renewable Energy for rural households, Philippines</span></div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>*<span>Promotion of small-holder farmers in bee-keeping, Ivory Coast</span> </div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>*<span>Promotion of small-holder farmers in bee-keeping, Ivory Coast</span></div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>*<span>Sustainable Development in the mountain areas of Jiangxi Province, China</span> </div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>*<span>Sustainable Development in the mountain areas of Jiangxi Province, China</span></div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>*<span>Maintenance of Physical Assets in the Public Health Sector, Philippines</span> </div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>*<span>Maintenance of Physical Assets in the Public Health Sector, Philippines</span></div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>*<span>Promotion of fisheries in Fogo and Brava islands, Cape Verde</span> </div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>*<span>Promotion of fisheries in Fogo and Brava islands, Cape Verde</span></div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>*<span>Promotion of sustainable use of natural resources and local economic development (PRORENA), Honduras</span> </div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>*<span>Promotion of sustainable use of natural resources and local economic development (PRORENA), Honduras</span></div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>*<span>Support for the Establishment of a Decentralized Health System in Himachal Pradesh, India</span> </div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>*<span>Support for the Establishment of a Decentralized Health System in Himachal Pradesh, India</span></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*<span>Promotion of an integrated social insurance system for women in the informal sector, India</span></div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*<span>Promotion of an integrated social insurance system for women in the informal sector, India</span></div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><div><br><div id="ftn1"><div></div></div></div></div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><div></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins class="diffchange diffchange-inline">= References</ins><br<ins class="diffchange diffchange-inline">/> =</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins class="diffchange diffchange-inline"><references /</ins>></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><div id="ftn1"><div></div></div></div></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>[[Category:Financing,_promotion_schemes_and_subsidies]]</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>[[Category:Financing,_promotion_schemes_and_subsidies]]</div></td></tr>
</table>Wiki Gardenerhttps://energypedia.info/index.php?title=Revolving_Funds&diff=21123&oldid=prevZieglerf at 15:14, 25 August 20102010-08-25T15:14:49Z<p></p>
<table class="diff diff-contentalign-left diff-editfont-monospace" data-mw="interface">
<col class="diff-marker" />
<col class="diff-content" />
<col class="diff-marker" />
<col class="diff-content" />
<tr class="diff-title" lang="en">
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">← Older revision</td>
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">Revision as of 15:14, 25 August 2010</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l1" >Line 1:</td>
<td colspan="2" class="diff-lineno">Line 1:</td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>= Introduction =</div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>= Introduction <ins class="diffchange diffchange-inline"> </ins>=</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div><div><span>The idea behind a Revolving Fund is that an organisation (or sometimes an individual) has a reserve of money (the Fund) which is used to lend to one or more borrowers. Over a given period of time, the borrower is expected to repay the original sum that restocks the fund. Usually, an additional sum is charged (interest) to the borrower that acts as a fee for providing the service (administrative costs) and helps to protect the fund from being depleted. Factors contributing to depletion can include inflation, non-payments and the cost to the lender of getting outside finance.</span></div><div><span>The concept of Revolving Funds is often used in developing countries to provide affordable access to credit for those wishing to borrow money for anything from buying food and productive inputs, to businesses and services.</span></div><div><span>Differences between formal and informal revolving funds</span></div><div><span>The main differences between an informal rotating credit scheme (a co-operative for example) and a formal revolving fund, lies in the source of the initial fund, the scale of lending and the structure of the credit management.</span></div><div>'''&nbsp;'''</div></div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div><div><span>The idea behind a Revolving Fund is that an organisation (or sometimes an individual) has a reserve of money (the Fund) which is used to lend to one or more borrowers. Over a given period of time, the borrower is expected to repay the original sum that restocks the fund. Usually, an additional sum is charged (interest) to the borrower that acts as a fee for providing the service (administrative costs) and helps to protect the fund from being depleted. Factors contributing to depletion can include inflation, non-payments and the cost to the lender of getting outside finance.</span></div><div><span>The concept of Revolving Funds is often used in developing countries to provide affordable access to credit for those wishing to borrow money for anything from buying food and productive inputs, to businesses and services.</span></div><div><span>Differences between formal and informal revolving funds</span></div><div><span>The main differences between an informal rotating credit scheme (a co-operative for example) and a formal revolving fund, lies in the source of the initial fund, the scale of lending and the structure of the credit management.</span></div><div>'''&nbsp;'''</div></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>== <span>Informal Funds</span> ==</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>== <span>Informal Funds</span> ==</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div><div><span>A co-operative is an example of an informal revolving fund. Informal funds are usually those found in developing countries at the local or community level, in poor areas where access to formal bank credit is virtually impossible. Members of a group put their savings into a commonly held fund, which is then lent to other members when they need a loan. Informal revolving funds do not usually earn any interest, unlike more formal schemes.</span></div><div><span>An important feature of such schemes is that they depend on social organisation to ensure loans are repaid. Peer or group pressure is a critical aspect of this kind of fund as it is used to ensure repayment, improve understanding between group members and can also be used to strengthen social networks.</span></div></div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div><div><span>A co-operative is an example of an informal revolving fund. Informal funds are usually those found in developing countries at the local or community level, in poor areas where access to formal bank credit is virtually impossible. Members of a group put their savings into a commonly held fund, which is then lent to other members when they need a loan. Informal revolving funds do not usually earn any interest, unlike more formal schemes.</span></div><div><span>An important feature of such schemes is that they depend on social organisation to ensure loans are repaid. Peer or group pressure is a critical aspect of this kind of fund as it is used to ensure repayment, improve understanding between group members and can also be used to strengthen social networks.</span></div></div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>== <span>Formal Funds</span> ==</div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>== <span>Formal Funds</span> <ins class="diffchange diffchange-inline"> </ins>==</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><div><span>Whilst informal revolving funds are based on community savings, a formal revolving fund usually uses 'seed' money from an outside organisation or agency. The capital fund is managed by a local organisation or NGO and not the community themselves.</span></div><div><span>The seed money is used to pay for the operational structure (buildings, office equipment and vehicles for example) and also to loan money to many small borrowers. Repayments by the original borrowers over an agreed period of time, puts money back into the fund for other people to borrow. If managed well, revolving funds are an excellent means of making affordable credit available to the poor and – with a small amount of capital – can help benefit many people.</span></div><div<del class="diffchange diffchange-inline">><span /</del>></div><div><span>Nota bene: The concept of formal revolving funds has recently been replaced with the concept of micro-finance, which incorporates many different elements of providing small amounts of money to a large number of people.</span></div><div></div></div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><div><span>Whilst informal revolving funds are based on community savings, a formal revolving fund usually uses 'seed' money from an outside organisation or agency. The capital fund is managed by a local organisation or NGO and not the community themselves.</span></div><div><span>The seed money is used to pay for the operational structure (buildings, office equipment and vehicles for example) and also to loan money to many small borrowers. Repayments by the original borrowers over an agreed period of time, puts money back into the fund for other people to borrow. If managed well, revolving funds are an excellent means of making affordable credit available to the poor and – with a small amount of capital – can help benefit many people.</span></div><div></div><div><span>Nota bene: The concept of formal revolving funds has recently been replaced with the concept of micro-finance, which incorporates many different elements of providing small amounts of money to a large number of people.</span></div><div></div></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>= <span>Revolving Funds – GTZ Reference Projects</span> =</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>= <span>Revolving Funds – GTZ Reference Projects</span> =</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>*<span>However, we highlight a couple of the projects and sectors here for easy reference:</span></div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>*<span>However, we highlight a couple of the projects and sectors here for easy reference:</span> </div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>*<span>Establishment of a micro-finance institution (SOCREMO), Mozambique</span></div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>*<span>Establishment of a micro-finance institution (SOCREMO), Mozambique</span> </div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>*<span>Establishment of a rural micro-finance system, Mongolia</span></div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>*<span>Establishment of a rural micro-finance system, Mongolia</span> </div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>*<span>Renewable Energy for rural households, Philippines</span></div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>*<span>Renewable Energy for rural households, Philippines</span> </div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>*<span>Promotion of small-holder farmers in bee-keeping, Ivory Coast</span></div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>*<span>Promotion of small-holder farmers in bee-keeping, Ivory Coast</span> </div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>*<span>Sustainable Development in the mountain areas of Jiangxi Province, China</span></div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>*<span>Sustainable Development in the mountain areas of Jiangxi Province, China</span> </div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>*<span>Maintenance of Physical Assets in the Public Health Sector, Philippines</span></div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>*<span>Maintenance of Physical Assets in the Public Health Sector, Philippines</span> </div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>*<span>Promotion of fisheries in Fogo and Brava islands, Cape Verde</span></div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>*<span>Promotion of fisheries in Fogo and Brava islands, Cape Verde</span> </div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>*<span>Promotion of sustainable use of natural resources and local economic development (PRORENA), Honduras</span></div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>*<span>Promotion of sustainable use of natural resources and local economic development (PRORENA), Honduras</span> </div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>*<span>Support for the Establishment of a Decentralized Health System in Himachal Pradesh, India</span></div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>*<span>Support for the Establishment of a Decentralized Health System in Himachal Pradesh, India</span> </div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*<span>Promotion of an integrated social insurance system for women in the informal sector, India</span></div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>*<span>Promotion of an integrated social insurance system for women in the informal sector, India</span></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div><div><br><div id="ftn1"><div></div></div></div></div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div><div><br><div id="ftn1"><div></div></div></div></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>[[Category:Financing,_promotion_schemes_and_subsidies]]</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>[[Category:Financing,_promotion_schemes_and_subsidies]]</div></td></tr>
</table>Zieglerfhttps://energypedia.info/index.php?title=Revolving_Funds&diff=21122&oldid=prevZieglerf at 15:14, 25 August 20102010-08-25T15:14:27Z<p></p>
<table class="diff diff-contentalign-left diff-editfont-monospace" data-mw="interface">
<col class="diff-marker" />
<col class="diff-content" />
<col class="diff-marker" />
<col class="diff-content" />
<tr class="diff-title" lang="en">
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">← Older revision</td>
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">Revision as of 15:14, 25 August 2010</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l1" >Line 1:</td>
<td colspan="2" class="diff-lineno">Line 1:</td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>= Introduction<del class="diffchange diffchange-inline">'''&lt;span /&gt;''' </del>=</div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>= Introduction =</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><div<del class="diffchange diffchange-inline">>'''<span /</del>><span>The idea behind a Revolving Fund is that an organisation (or sometimes an individual) has a reserve of money (the Fund) which is used to lend to one or more borrowers. Over a given period of time, the borrower is expected to repay the original sum that restocks the fund. Usually, an additional sum is charged (interest) to the borrower that acts as a fee for providing the service (administrative costs) and helps to protect the fund from being depleted. Factors contributing to depletion can include inflation, non-payments and the cost to the lender of getting outside finance.</span><del class="diffchange diffchange-inline">'''</del></div><div><span>The concept of Revolving Funds is often used in developing countries to provide affordable access to credit for those wishing to borrow money for anything from buying food and productive inputs, to businesses and services.</span></div><div><span>Differences between formal and informal revolving funds</span></div><div><span>The main differences between an informal rotating credit scheme (a co-operative for example) and a formal revolving fund, lies in the source of the initial fund, the scale of lending and the structure of the credit management.</span></div><div>'''&nbsp;'''</div></div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><div><span>The idea behind a Revolving Fund is that an organisation (or sometimes an individual) has a reserve of money (the Fund) which is used to lend to one or more borrowers. Over a given period of time, the borrower is expected to repay the original sum that restocks the fund. Usually, an additional sum is charged (interest) to the borrower that acts as a fee for providing the service (administrative costs) and helps to protect the fund from being depleted. Factors contributing to depletion can include inflation, non-payments and the cost to the lender of getting outside finance.</span></div><div><span>The concept of Revolving Funds is often used in developing countries to provide affordable access to credit for those wishing to borrow money for anything from buying food and productive inputs, to businesses and services.</span></div><div><span>Differences between formal and informal revolving funds</span></div><div><span>The main differences between an informal rotating credit scheme (a co-operative for example) and a formal revolving fund, lies in the source of the initial fund, the scale of lending and the structure of the credit management.</span></div><div>'''&nbsp;'''</div></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>== <span>Informal Funds</span> ==</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>== <span>Informal Funds</span> ==</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><div<del class="diffchange diffchange-inline">>'''<span /</del>><span>A co-operative is an example of an informal revolving fund. Informal funds are usually those found in developing countries at the local or community level, in poor areas where access to formal bank credit is virtually impossible. Members of a group put their savings into a commonly held fund, which is then lent to other members when they need a loan. Informal revolving funds do not usually earn any interest, unlike more formal schemes.</span><del class="diffchange diffchange-inline">'''</del></div><div><span>An important feature of such schemes is that they depend on social organisation to ensure loans are repaid. Peer or group pressure is a critical aspect of this kind of fund as it is used to ensure repayment, improve understanding between group members and can also be used to strengthen social networks.</span></div></div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><div><span>A co-operative is an example of an informal revolving fund. Informal funds are usually those found in developing countries at the local or community level, in poor areas where access to formal bank credit is virtually impossible. Members of a group put their savings into a commonly held fund, which is then lent to other members when they need a loan. Informal revolving funds do not usually earn any interest, unlike more formal schemes.</span></div><div><span>An important feature of such schemes is that they depend on social organisation to ensure loans are repaid. Peer or group pressure is a critical aspect of this kind of fund as it is used to ensure repayment, improve understanding between group members and can also be used to strengthen social networks.</span></div></div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>== <span>Formal Funds<del class="diffchange diffchange-inline">[http://energypedia.info/extensions/FCKeditor/fckeditor/editor/fckeditor.html?InstanceName=wpTextbox1&Toolbar=Wiki#_ftn1 '''<span><span><span></span></span></span>'''<span><font color="#002bb8">[1</font></del></span><del class="diffchange diffchange-inline">'''<span id="1282748946896E" style="display: none"><font color="#002bb8">&nbsp;</font></span>''']]</span> </del>==</div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>== <span>Formal Funds</span> ==</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><div><span>Whilst informal revolving funds are based on community savings, a formal revolving fund usually uses 'seed' money from an outside organisation or agency. The capital fund is managed by a local organisation or NGO and not the community themselves.</span></div><div><span>The seed money is used to pay for the operational structure (buildings, office equipment and vehicles for example) and also to loan money to many small borrowers. Repayments by the original borrowers over an agreed period of time, puts money back into the fund for other people to borrow. If managed well, revolving funds are an excellent means of making affordable credit available to the poor and – with a small amount of capital – can help benefit many people.</span></div><div><span><del class="diffchange diffchange-inline">1)</del>The concept of formal revolving funds has recently been replaced with the concept of micro-finance, which incorporates many different elements of providing small amounts of money to a large number of people.</span></div><div><del class="diffchange diffchange-inline">&nbsp;</div><div>'''<span />'''</del></div></div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><div><span>Whilst informal revolving funds are based on community savings, a formal revolving fund usually uses 'seed' money from an outside organisation or agency. The capital fund is managed by a local organisation or NGO and not the community themselves.</span></div><div><span>The seed money is used to pay for the operational structure (buildings, office equipment and vehicles for example) and also to loan money to many small borrowers. Repayments by the original borrowers over an agreed period of time, puts money back into the fund for other people to borrow. If managed well, revolving funds are an excellent means of making affordable credit available to the poor and – with a small amount of capital – can help benefit many people.</span></div><div><span <ins class="diffchange diffchange-inline">/</ins>><ins class="diffchange diffchange-inline"></div><div><span>Nota bene: </ins>The concept of formal revolving funds has recently been replaced with the concept of micro-finance, which incorporates many different elements of providing small amounts of money to a large number of people.</span></div><div></div></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>= <span>Revolving Funds – GTZ Reference Projects</span> =</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>= <span>Revolving Funds – GTZ Reference Projects</span> =</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><del style="font-weight: bold; text-decoration: none;"><div><span>However, we highlight a couple of the projects and sectors here for easy reference:</span></div><div><span>Establishment of a micro-finance institution (SOCREMO), Mozambique</span></div><div><span>Establishment of a rural micro-finance system, Mongolia</span></div><div><span>Renewable Energy for rural households, Philippines</span></div><div><span>Promotion of small-holder farmers in bee-keeping, Ivory Coast</span></div><div><span>Sustainable Development in the mountain areas of Jiangxi Province, China</span></div><div><span>Maintenance of Physical Assets in the Public Health Sector, Philippines</span></div><div><span>Promotion of fisheries in Fogo and Brava islands, Cape Verde</span></div><div><span>Promotion of sustainable use of natural resources and local economic development (PRORENA), Honduras</span></div><div><span>Support for the Establishment of a Decentralized Health System in Himachal Pradesh, India</span></div><div><span>Promotion of an integrated social insurance system for women in the informal sector, India</span></div><div><br></del></div></td><td colspan="2"> </td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><del style="font-weight: bold; text-decoration: none;">----</del></div></td><td colspan="2"> </td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><del style="font-weight: bold; text-decoration: none;"><div id="ftn1"><div>[[#_ftnref1|<span><span><span>[1]</span></span></span>]]<font size="2"><span>The concept revolving funds (both formal and informal) has been used in numerous GTZ projects in many developing countries and across a variety of sectors. Annex I to this document provides a more detailed list of projects in which revolving funds have been used to achieve project objectives.</span></font></div></div></div></del></div></td><td colspan="2"> </td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><del style="font-weight: bold; text-decoration: none;"></del></div></td><td colspan="2"> </td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">*<span>However, we highlight a couple of the projects and sectors here for easy reference:</span></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">*<span>Establishment of a micro-finance institution (SOCREMO), Mozambique</span></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">*<span>Establishment of a rural micro-finance system, Mongolia</span></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">*<span>Renewable Energy for rural households, Philippines</span></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">*<span>Promotion of small-holder farmers in bee-keeping, Ivory Coast</span></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">*<span>Sustainable Development in the mountain areas of Jiangxi Province, China</span></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">*<span>Maintenance of Physical Assets in the Public Health Sector, Philippines</span></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">*<span>Promotion of fisheries in Fogo and Brava islands, Cape Verde</span></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">*<span>Promotion of sustainable use of natural resources and local economic development (PRORENA), Honduras</span></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">*<span>Support for the Establishment of a Decentralized Health System in Himachal Pradesh, India</span></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">*<span>Promotion of an integrated social insurance system for women in the informal sector, India</span></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;"><div><br><div id="ftn1"><div></div></div></div></ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>[[Category:Financing,_promotion_schemes_and_subsidies]]</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>[[Category:Financing,_promotion_schemes_and_subsidies]]</div></td></tr>
</table>Zieglerfhttps://energypedia.info/index.php?title=Revolving_Funds&diff=21120&oldid=prevZieglerf at 15:13, 25 August 20102010-08-25T15:13:36Z<p></p>
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<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">Revision as of 15:13, 25 August 2010</td>
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<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>= Introduction'''<del class="diffchange diffchange-inline"><</del>span /<del class="diffchange diffchange-inline">></del>''' =</div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>= Introduction'''<ins class="diffchange diffchange-inline">&lt;</ins>span /<ins class="diffchange diffchange-inline">&gt;</ins>''' <ins class="diffchange diffchange-inline"> </ins>=</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><div>'''<span<del class="diffchange diffchange-inline">><</del>/<del class="diffchange diffchange-inline">span</del>><span>The idea behind a Revolving Fund is that an organisation (or sometimes an individual) has a reserve of money (the Fund) which is used to lend to one or more borrowers. Over a given period of time, the borrower is expected to repay the original sum that restocks the fund. Usually, an additional sum is charged (interest) to the borrower that acts as a fee for providing the service (administrative costs) and helps to protect the fund from being depleted. Factors contributing to depletion can include inflation, non-payments and the cost to the lender of getting outside finance.</span>'''</div><div><span>The concept of Revolving Funds is often used in developing countries to provide affordable access to credit for those wishing to borrow money for anything from buying food and productive inputs, to businesses and services.</span></div><div><span>Differences between formal and informal revolving funds</span></div><div><span>The main differences between an informal rotating credit scheme (a co-operative for example) and a formal revolving fund, lies in the source of the initial fund, the scale of lending and the structure of the credit management.</span></div><div>'''&nbsp;'''</div></div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><div>'''<span /><span>The idea behind a Revolving Fund is that an organisation (or sometimes an individual) has a reserve of money (the Fund) which is used to lend to one or more borrowers. Over a given period of time, the borrower is expected to repay the original sum that restocks the fund. Usually, an additional sum is charged (interest) to the borrower that acts as a fee for providing the service (administrative costs) and helps to protect the fund from being depleted. Factors contributing to depletion can include inflation, non-payments and the cost to the lender of getting outside finance.</span>'''</div><div><span>The concept of Revolving Funds is often used in developing countries to provide affordable access to credit for those wishing to borrow money for anything from buying food and productive inputs, to businesses and services.</span></div><div><span>Differences between formal and informal revolving funds</span></div><div><span>The main differences between an informal rotating credit scheme (a co-operative for example) and a formal revolving fund, lies in the source of the initial fund, the scale of lending and the structure of the credit management.</span></div><div>'''&nbsp;'''</div></div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>== <span>Informal Funds</span> ==</div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>== <span>Informal Funds</span> <ins class="diffchange diffchange-inline"> </ins>==</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><div>'''<span<del class="diffchange diffchange-inline">><</del>/<del class="diffchange diffchange-inline">span</del>><span>A co-operative is an example of an informal revolving fund. Informal funds are usually those found in developing countries at the local or community level, in poor areas where access to formal bank credit is virtually impossible. Members of a group put their savings into a commonly held fund, which is then lent to other members when they need a loan. Informal revolving funds do not usually earn any interest, unlike more formal schemes.</span>'''</div><div><span>An important feature of such schemes is that they depend on social organisation to ensure loans are repaid. Peer or group pressure is a critical aspect of this kind of fund as it is used to ensure repayment, improve understanding between group members and can also be used to strengthen social networks.</span></div></div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><div>'''<span /><span>A co-operative is an example of an informal revolving fund. Informal funds are usually those found in developing countries at the local or community level, in poor areas where access to formal bank credit is virtually impossible. Members of a group put their savings into a commonly held fund, which is then lent to other members when they need a loan. Informal revolving funds do not usually earn any interest, unlike more formal schemes.</span>'''</div><div><span>An important feature of such schemes is that they depend on social organisation to ensure loans are repaid. Peer or group pressure is a critical aspect of this kind of fund as it is used to ensure repayment, improve understanding between group members and can also be used to strengthen social networks.</span></div></div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>== <span>Formal Funds[http://energypedia.info/extensions/FCKeditor/fckeditor/editor/fckeditor.html?InstanceName=wpTextbox1&Toolbar=Wiki#_ftn1 '''<span><span><span>'''<span><font color="#002bb8">[1<del class="diffchange diffchange-inline">]</del></font></span>'''<span id="1282748946896E" style="display: none"><font color="#002bb8">&nbsp;</font<del class="diffchange diffchange-inline">></span></span></span</del>></span>''']</span> ==</div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>== <span>Formal Funds[http://energypedia.info/extensions/FCKeditor/fckeditor/editor/fckeditor.html?InstanceName=wpTextbox1&Toolbar=Wiki#_ftn1 '''<span><span><<ins class="diffchange diffchange-inline">span></span></span></</ins>span>'''<span><font color="#002bb8">[1</font></span>'''<span id="1282748946896E" style="display: none"><font color="#002bb8">&nbsp;</font></span>'''<ins class="diffchange diffchange-inline">]</ins>]</span> <ins class="diffchange diffchange-inline"> </ins>==</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><div><span>Whilst informal revolving funds are based on community savings, a formal revolving fund usually uses 'seed' money from an outside organisation or agency. The capital fund is managed by a local organisation or NGO and not the community themselves.</span></div><div><span>The seed money is used to pay for the operational structure (buildings, office equipment and vehicles for example) and also to loan money to many small borrowers. Repayments by the original borrowers over an agreed period of time, puts money back into the fund for other people to borrow. If managed well, revolving funds are an excellent means of making affordable credit available to the poor and – with a small amount of capital – can help benefit many people.</span></div><div><span>1)The concept of formal revolving funds has recently been replaced with the concept of micro-finance, which incorporates many different elements of providing small amounts of money to a large number of people.</span></div><div>&nbsp;</div><div>'''<span<del class="diffchange diffchange-inline">><</del>/<del class="diffchange diffchange-inline">span</del>>'''</div></div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><div><span>Whilst informal revolving funds are based on community savings, a formal revolving fund usually uses 'seed' money from an outside organisation or agency. The capital fund is managed by a local organisation or NGO and not the community themselves.</span></div><div><span>The seed money is used to pay for the operational structure (buildings, office equipment and vehicles for example) and also to loan money to many small borrowers. Repayments by the original borrowers over an agreed period of time, puts money back into the fund for other people to borrow. If managed well, revolving funds are an excellent means of making affordable credit available to the poor and – with a small amount of capital – can help benefit many people.</span></div><div><span>1)The concept of formal revolving funds has recently been replaced with the concept of micro-finance, which incorporates many different elements of providing small amounts of money to a large number of people.</span></div><div>&nbsp;</div><div>'''<span />'''</div></div></td></tr>
<tr><td class='diff-marker'>−</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>= <span>Revolving Funds – GTZ Reference Projects</span> =</div></td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>= <span>Revolving Funds – GTZ Reference Projects</span> <ins class="diffchange diffchange-inline"> </ins>=</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div><div><span>However, we highlight a couple of the projects and sectors here for easy reference:</span></div><div><span>Establishment of a micro-finance institution (SOCREMO), Mozambique</span></div><div><span>Establishment of a rural micro-finance system, Mongolia</span></div><div><span>Renewable Energy for rural households, Philippines</span></div><div><span>Promotion of small-holder farmers in bee-keeping, Ivory Coast</span></div><div><span>Sustainable Development in the mountain areas of Jiangxi Province, China</span></div><div><span>Maintenance of Physical Assets in the Public Health Sector, Philippines</span></div><div><span>Promotion of fisheries in Fogo and Brava islands, Cape Verde</span></div><div><span>Promotion of sustainable use of natural resources and local economic development (PRORENA), Honduras</span></div><div><span>Support for the Establishment of a Decentralized Health System in Himachal Pradesh, India</span></div><div><span>Promotion of an integrated social insurance system for women in the informal sector, India</span></div><div><br></div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div><div><span>However, we highlight a couple of the projects and sectors here for easy reference:</span></div><div><span>Establishment of a micro-finance institution (SOCREMO), Mozambique</span></div><div><span>Establishment of a rural micro-finance system, Mongolia</span></div><div><span>Renewable Energy for rural households, Philippines</span></div><div><span>Promotion of small-holder farmers in bee-keeping, Ivory Coast</span></div><div><span>Sustainable Development in the mountain areas of Jiangxi Province, China</span></div><div><span>Maintenance of Physical Assets in the Public Health Sector, Philippines</span></div><div><span>Promotion of fisheries in Fogo and Brava islands, Cape Verde</span></div><div><span>Promotion of sustainable use of natural resources and local economic development (PRORENA), Honduras</span></div><div><span>Support for the Establishment of a Decentralized Health System in Himachal Pradesh, India</span></div><div><span>Promotion of an integrated social insurance system for women in the informal sector, India</span></div><div><br></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>----</div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>----</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div><div id="ftn1"><div>[[#_ftnref1|<span><span><span>[1]</span></span></span>]]<font size="2"><span>The concept revolving funds (both formal and informal) has been used in numerous GTZ projects in many developing countries and across a variety of sectors. Annex I to this document provides a more detailed list of projects in which revolving funds have been used to achieve project objectives.</span></font></div></div></div></div></td><td class='diff-marker'> </td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div><div id="ftn1"><div>[[#_ftnref1|<span><span><span>[1]</span></span></span>]]<font size="2"><span>The concept revolving funds (both formal and informal) has been used in numerous GTZ projects in many developing countries and across a variety of sectors. Annex I to this document provides a more detailed list of projects in which revolving funds have been used to achieve project objectives.</span></font></div></div></div></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">[[Category:Financing,_promotion_schemes_and_subsidies]]</ins></div></td></tr>
</table>Zieglerfhttps://energypedia.info/index.php?title=Revolving_Funds&diff=21119&oldid=prevZieglerf: Created page with '= Introduction'''<span />''' = <div>'''<span></span><span>The idea behind a Revolving Fund is that an organisation (or sometimes an individual) has a reserve of money (the Fund) ...'2010-08-25T15:12:40Z<p>Created page with '= Introduction'''<span />''' = <div>'''<span></span><span>The idea behind a Revolving Fund is that an organisation (or sometimes an individual) has a reserve of money (the Fund) ...'</p>
<p><b>New page</b></p><div>= Introduction'''<span />''' =<br />
<div>'''<span></span><span>The idea behind a Revolving Fund is that an organisation (or sometimes an individual) has a reserve of money (the Fund) which is used to lend to one or more borrowers. Over a given period of time, the borrower is expected to repay the original sum that restocks the fund. Usually, an additional sum is charged (interest) to the borrower that acts as a fee for providing the service (administrative costs) and helps to protect the fund from being depleted. Factors contributing to depletion can include inflation, non-payments and the cost to the lender of getting outside finance.</span>'''</div><div><span>The concept of Revolving Funds is often used in developing countries to provide affordable access to credit for those wishing to borrow money for anything from buying food and productive inputs, to businesses and services.</span></div><div><span>Differences between formal and informal revolving funds</span></div><div><span>The main differences between an informal rotating credit scheme (a co-operative for example) and a formal revolving fund, lies in the source of the initial fund, the scale of lending and the structure of the credit management.</span></div><div>'''&nbsp;'''</div><br />
== <span>Informal Funds</span> ==<br />
<div>'''<span></span><span>A co-operative is an example of an informal revolving fund. Informal funds are usually those found in developing countries at the local or community level, in poor areas where access to formal bank credit is virtually impossible. Members of a group put their savings into a commonly held fund, which is then lent to other members when they need a loan. Informal revolving funds do not usually earn any interest, unlike more formal schemes.</span>'''</div><div><span>An important feature of such schemes is that they depend on social organisation to ensure loans are repaid. Peer or group pressure is a critical aspect of this kind of fund as it is used to ensure repayment, improve understanding between group members and can also be used to strengthen social networks.</span></div><br />
== <span>Formal Funds[http://energypedia.info/extensions/FCKeditor/fckeditor/editor/fckeditor.html?InstanceName=wpTextbox1&Toolbar=Wiki#_ftn1 '''<span><span><span>'''<span><font color="#002bb8">[1]</font></span>'''<span id="1282748946896E" style="display: none"><font color="#002bb8">&nbsp;</font></span></span></span></span>''']</span> ==<br />
<div><span>Whilst informal revolving funds are based on community savings, a formal revolving fund usually uses 'seed' money from an outside organisation or agency. The capital fund is managed by a local organisation or NGO and not the community themselves.</span></div><div><span>The seed money is used to pay for the operational structure (buildings, office equipment and vehicles for example) and also to loan money to many small borrowers. Repayments by the original borrowers over an agreed period of time, puts money back into the fund for other people to borrow. If managed well, revolving funds are an excellent means of making affordable credit available to the poor and – with a small amount of capital – can help benefit many people.</span></div><div><span>1)The concept of formal revolving funds has recently been replaced with the concept of micro-finance, which incorporates many different elements of providing small amounts of money to a large number of people.</span></div><div>&nbsp;</div><div>'''<span></span>'''</div><br />
= <span>Revolving Funds – GTZ Reference Projects</span> =<br />
<div><span>However, we highlight a couple of the projects and sectors here for easy reference:</span></div><div><span>Establishment of a micro-finance institution (SOCREMO), Mozambique</span></div><div><span>Establishment of a rural micro-finance system, Mongolia</span></div><div><span>Renewable Energy for rural households, Philippines</span></div><div><span>Promotion of small-holder farmers in bee-keeping, Ivory Coast</span></div><div><span>Sustainable Development in the mountain areas of Jiangxi Province, China</span></div><div><span>Maintenance of Physical Assets in the Public Health Sector, Philippines</span></div><div><span>Promotion of fisheries in Fogo and Brava islands, Cape Verde</span></div><div><span>Promotion of sustainable use of natural resources and local economic development (PRORENA), Honduras</span></div><div><span>Support for the Establishment of a Decentralized Health System in Himachal Pradesh, India</span></div><div><span>Promotion of an integrated social insurance system for women in the informal sector, India</span></div><div><br><br />
----<br />
<div id="ftn1"><div>[[#_ftnref1|<span><span><span>[1]</span></span></span>]]<font size="2"><span>The concept revolving funds (both formal and informal) has been used in numerous GTZ projects in many developing countries and across a variety of sectors. Annex I to this document provides a more detailed list of projects in which revolving funds have been used to achieve project objectives.</span></font></div></div></div></div>Zieglerf