With reference to 'WaterCredit', consider the following statements:
- 1.It puts microfinance tools to work in the water and sanitation sector.
- 2.It is a global initiative launched under the aegis of the World Health Organization and the World Bank.
- 3.It aims to enable the poor people to meet their water needs without depending on subsidies.
Which of the statements given above are correct?
Answer & explanation
Answer: (c) 1 and 3 only
WaterCredit is a loan programme created by the non-profit Water.org, not by the WHO or the World Bank. It works with local lenders so that poor households can borrow small sums for a tap connection or toilet and repay over time, instead of waiting for subsidies or charity.
- ✓ 1. Water.org describes WaterCredit as the first programme to apply microfinance to water and sanitation, through partner financial institutions that add such loans to their offerings.
- ✗ 2. The initiative was created by Water.org, a non-governmental organisation; it is not a WHO or World Bank programme.
- ✓ 3. Its premise is that poor families already spend heavily on water and, given affordable credit, will pay for lasting household solutions themselves, a market-based route rather than a subsidy.
Remember · WaterCredit = Water.org's microloan model for household water and toilets; market-driven, repaid by borrowers, not a WHO/World Bank subsidy scheme.
Sources
- Water.org, WaterCredit Initiative ↗ · reference work “WaterCredit is a powerful solution and the first to put microfinance tools to work in the water and sanitation sector. … One of the major barriers to safe water and sanitation is affordable financing. We created the WaterCredit Initiative® loan program to address this barrier head-on. … millions of people living in poverty would finance long-term solutions versus struggle day-to-day to find that next liter of water.”
Question and answer: UPSC's official GS Paper I (2021, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 1 Oct 2026 (how we verify). ·