Traditional developmental loans are typically designed to generate sufficient income to cover operating costs, meet loan repayments, and ensure profitability. However, the Livelihoods and Investments Facility (LAIF) presents a distinctive approach as a hybrid development loan, offering more flexibility and support.

LAIF provides funding for both developmental and livelihood initiatives, with the unique feature that repayments are made directly from the borrowers’ salaries. Borrowers are encouraged to utilize loan proceeds to quickly reduce their debts, particularly beneficial if their projects require additional capital for expansion or if they wish to embark on new ventures.

The primary goal of LAIF is to empower working Solomon Islanders by enabling them to access funds to develop their traditionally-owned land and engage in productive activities that interest them. By leveraging their current income, borrowers can ensure timely loan repayments to the Bank. The investments funded through LAIF not only aim to create additional income sources but also to significantly improve living conditions in rural areas.