Sustainable finance
Social Loan
A use-of-proceeds loan financing projects with positive social outcomes, governed by the Social Loan Principles.
Definition
A social loan is a loan instrument whose proceeds are exclusively applied to finance or refinance eligible social projects — affordable housing, access to essential services, employment generation, food security or socio-economic advancement for target populations — aligned with the four core components of the LMA/ICMA Social Loan Principles: use of proceeds, project evaluation and selection, management of proceeds, and reporting.
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