How EPI works

1. Financing

Your fund can be in the form of donation or a loan. WE ACCEPT ANY AMOUNT OF DONATIONS. YOUR DONATION IS 100% TAX DEDUCTIBLE. Donation less than $500 USD will be managed at EPI's discretion. For example, EPI may use the donation for operation expense or for loans.

Donation above $500 USD can be designated as a microfinance loan or EPI operation expense. If you designate a microfinance loan, we will use 10% of your donation to support our operation costs unless you provide specific instructions regarding the funds.

You can choose to make a LOAN, not donation, to EPI. A loan will receive no interest, and will be returned to you at the end of the loan term, usually 12 months. Loans are NOT tax deductible. However, we will use 10% of your fund to support our operation costs. This 10% will be treated as DONATION. For example, your $500 fund will be taken out 10%, $50, for operation donation and the remaining $450 will be your loan amount.

EPI has ultimate authority to use donations received at EPI's discretion to deliver microfinance loans to the poor. We don’t charge the loan partner's any interest but will accept reimbursement of small administration fees. We do not pay interest to the lenders.

2. Loan partner selection criteria

We select our loan partners according to their management ability, reputation and repayment track record. Loan partners charge interest to loan recipients in order to support their operation cost. We select only those loan partners who will charge interest rate allowed by the local government and agree to the maximum interest rates set by EPI. EPI strives to safeguard the business profit of the loan recipients.

3. Selection process of loan recipients

Our loan partners will screen the new applicants according to their business capability to make profit and repay the microfinance loans, credit, reputation, and proof of low income. EPI joins our loan partners in the screening process. We send the information of the screened applicants to you for approval by email. Currently our lenders authorize EPI to select the loan recipients.

4. Delivery of your fund

We accumulate individual funds to form a group fund. After the loan recipients are selected, EPI will transfer your fund in a group fund to our loan partners who will distribute the fund to the loan recipients.

5. Loan progress report

You will receive email reports from EPI regarding the starting date of the loan and the semi-annual repayment amounts. Representatives from EPI will also visit loan recipients to verify the loan amount received and report to you regarding the impact of the loan.

6. Redistributing the loan

At the end of a loan cycle (typically 12 months), if you decide to lend to another loan recipient, EPI will send the information of the new applicants to you, and the loan process repeats. You can authorize EPI to manage the redistribution.

7. Terminating the loan at the end of a loan cycle

If you decide to terminate the loan, EPI will pay back the loan according to the most recent semi-annual repayment report. The amount received by you may be less than the original amount due to the repayment rate being less than 100%, the currency exchange rate loss, and fund transfer expense. For example, the original amount is $100. If the repayment amount on the most recent semi-annual statement is $98, EPI will pay back to you, the lender, $98 less the exchange rate loss and fund transfer expense.