- Microloans for Household Water and Sanitation : Financial institutions can offer small, affordable loans to low-income households to build toilets, install handwashing stations, or connect to clean water networks. These targeted loans directly improve hygiene and reduce waterborne diseases, especially in informal settlements.
- Project Finance for Water Supply Systems : Banks and DFIs can provide long-term financing to utilities and local governments for the construction of piped water systems, deep borewells, and rural water supply schemes. These investments expand access to safe and reliable drinking water.
- Blended Finance for Community Sanitation Projects : By leveraging public and philanthropic capital alongside private funding, financial institutions can support decentralized community toilets, solid waste management units, and water purification facilities. This approach reduces risk and enables service provision in underserved areas.
- Water Credit Programs via NGOs or MFIs : Partnering with NGOs and microfinance institutions, banks can fund water credit programs that allow low-income communities to access financing for household water and sanitation improvements. These models use social lending mechanisms to ensure high repayment rates.
- Green or Blue Bonds for Water Infrastructure : Issuing bonds specifically for clean water and sanitation infrastructure allows financial institutions to mobilize large-scale funding for water treatment plants, stormwater drainage systems, and wastewater reuse projects, all of which support SDG 6 targets.
- Financing for Rainwater Harvesting and Storage : Banks can provide loans or subsidies for rooftop rainwater harvesting systems, underground tanks, and smart water storage solutions. These promote water conservation and help communities become more resilient to water scarcity.
- Credit for Water-Efficient Farming Equipment : Targeted credit can help farmers adopt drip irrigation, sprinkler systems, and soil moisture sensors. These technologies reduce water usage in agriculture, supporting sustainable water use while maintaining productivity.
- Loans for Water Purification and Filtration Devices : Financial institutions can offer consumer finance for affordable household water filters, community purification units, and UV-based treatment systems. These products directly improve water quality and reduce reliance on unsafe sources.
- Support for Sanitation Startups and Entrepreneurs : Banks can offer seed funding or working capital to sanitation entrepreneurs building toilets, desludging services, or mobile WASH units. This stimulates private-sector innovation in water and sanitation delivery.
- Results-Based Financing for WASH Outcomes : Banks can support financing structures where funds are disbursed only when pre-agreed outcomes—like increased household water access or improved sanitation facilities—are achieved and independently verified, ensuring accountability and measurable progress.
