Fig. 1

Traditional Microfinance vs. Metafinance. By definition, in traditional microfinance, the bank lends to an individual consumer for water improvements, such as a new water connection, pays the utility for water consumed and repays the bank the loan. In metafinance, the bank lends the money to the utility for water improvements, and the consumer pays the utility both for water consumed and the loan repayment through an agreed tariff structure. The figure provides a graphical description of the two financing models