Our Funding Model: Grants & Loans

Eligibility for a loan or a grant depends on the type of organization. For-profit organizations can only apply for loans, and non-profit organizations can apply for grants.

Grant finance for non-profits/community-based organizations: Grants are disbursed in several tranches, starting with the signing of the agreement and then following reports.

Low-interest loans for for-profit organizations: Low-interest loans are issued in tranches, with term lengths of one to five years.

Commonly Asked Questions

How do I know if my organization is a for-profit or a non-profit?

• Your organization's status is usually indicated on your official registration documents. If your organization does not aim to turn a profit and is tax-exempt, you are a "non-profit organization." If your organization does aim to make a profit and sell goods or services, you are a "for-profit organization."

How much funding should I apply for?

• Please note that organisations (both for-profits and non-profits) can submit a funding ask between $ 25,000 - $300,000 (~INR 20 lakhs – INR 2.5 Cr).

  These are guidelines, and we will consider organisations for funding based on a one-on-one discussion with the founders to understand their business models and financing requirements, in detail. However, if you deviate from these guidelines, your application must provide adequate justification for your request.   

Who is providing funding for this initiative?

• Our initiative has multiple funders who are committed to supporting our mission. These funders include several organizations and individuals who share our vision. We are grateful for their support, which allows us to carry out our work and achieve our goals.

• We value our relationships with our funders and work closely with them to ensure that their contributions are used effectively and efficiently. We are committed to transparency and accountability in our financial operations and regularly updates to our funders and stakeholders. If you have any further questions about our funding sources or financial operations, please do not hesitate to reach out to us.

Will grants and loans be provided via results-based financing arrangements? 

• Yes, we are committed to using a range of financing arrangements to support our grant and loan programs, including results-based financing. We believe that this approach can be an effective way to encourage positive outcomes and promote accountability among our partners.
• For this, we will be implementing a tranche system for loans and grants this year. This system involves providing funding in stages, with each tranche contingent on the achievement of specific milestones or targets. This approach can help to ensure that funding is used effectively and efficiently, and can also provide additional support and guidance to our borrowers as they work to achieve their goals.

Will there be future funding opportunities? 

• We hope to fund at least 20 projects in the first round on Harit Bharat Fund. We also have ongoing programmes which we announce via TerraMatch and Manthan.

For businesses, what will the interest rate of the loans be?

• We understand that interest rates are an important consideration for businesses looking to access funding. Our loan program is designed to provide flexible and affordable financing options to support businesses in achieving their goals.
• It will be flexible and finalised based upon the understanding of the business model of the selected for-profit enterprises (Startups s. Farmer Producer Companies).

Enterprise-specific Questions and Answers 

Why are for-profit organizations only eligible for loans?

• For the current funding framework, loans are only available for for-profit enterprises, while grants are available for non-profits.
• Through our work with the Land Accelerator South Asia, we have worked with hundreds of entrepreneurs who are restoring degraded land. Many have accessed grant finance from friends, their family, crowdfunding, or small grants, but they can only raise so much until the demands of their business outgrow what is available.
• When they first try to access debt finance from local banks or impact investors, interest rates or the demand for advanced financial literacy are too high. This makes it hard for restoration entrepreneurs to hire more staff, build factories, or expand their networks of farmers. As they improve their financial fitness, some receive additional grants to improve their work.
• Harit Bharat Fund works directly with entrepreneurs to help them ready their businesses for the types of private investment, like debt and equity, that will help them grow in the long run. We issue low-interest loans and are flexible with repayment terms to build up the habit of repayment.

For businesses, what will the interest rate of the loans be? 

• We understand that interest rates are an important consideration for businesses looking to access funding. Our loan program is designed to provide flexible and affordable financing options to support businesses in achieving their goals.
• The loan's interest rate will be flexible and finalized based on the understanding of the business model of the selected for-profit enterprises.

What stage of growth do for-profits need to reach before they can apply? 

We welcome applications from for-profit enterprises at the early and mid-early growth stages. We encourage entrepreneurs with defined product and service offers with paying customers to apply, as long as they meet certain criteria related to their experience and impact in the field of landscape restoration.

Specifically, we are looking for organizations that meet at least one of the following criteria:

• More than 4 years' restoration experience, with more than or equal to 50% of this experience inside of the region as the funding program specifies.
• Greater than 100 hectares restored in total, in or outside of the same region as the funding program specifies.
• Greater than 30 hectares under trees-based restoration in the last 36 months, in or outside of the same region as the funding program specifies.

If an organization meets any of these criteria, we encourage their leadership to submit an application for funding. We are committed to supporting a diverse range of organizations and approaches in the field of landscape restoration, and are excited to hear from businesses at various stages of growth and development.

Imagine an enterprise that has received investment and used that for our operations. That wouldn’t count towards revenue, but how would the enterprise reflect that as part of their scale? 

• If an enterprise has received investment funding that has been used to support your operations, we recommend that that organization provide a detailed breakdown of how that funding was used in the additional information section of the Expression of Interest. This breakdown should include information on the specific areas or activities that the funding was used to support, such as product development, marketing, operations, etc.
• By providing this information, you can help to demonstrate the impact and scale of your enterprise beyond just revenue figures. We are interested in understanding how your enterprise is leveraging its resources to achieve its goals, and providing details on your use of investment funding can help to provide a more complete picture of your operations and potential for impact