Role of MFIs in Micro Housing Finance

Rajan Samuel,

Habitat for Humanity International

BPL/ Vulnerable Beneficiaries

Economically Weaker Sections- EWS

Grant Housing

Less than Rs10,000 (<$200)

Less than Rs15,000 (<$300)

> Greater than

Rs20000 (>$400)

Categories INCOME RANGE PER MONTH

HOUSING SUPPLY

POVERTY HOUSING PYRAMID (whom do we serve in the market?)

2

1.Vision and Capacity 2. Scale & Sustainability 3. Packaging of financial & non-financial services (Housing support services / Construction technical assistance) 4. Transition from Housing micro-finance to micro mortgage loans

Key drives for simulating housing micro finance through Micro-Finance Institutions

• Role of MFI in promoting affordable & cost effective ‘bamboo technology’ – Nepal experience

• Integrating housing solutions through Women’s savings groups in Vietnam

• Exploring ‘scale’ through TSPI in the Philippines (from a pilot sanitation loan)

• SEEDS offering an integrated housing loan to existing clients – Sri Lankan experience

• Packaging HSS (Housing support services): Indian experience

Habitat for Humanity International:

Lessons from Regional experiences

5

What constitutes Low Income Housing?

Low Income Housing

Housing as Shelter

Housing as Shelter

Housing as investment / asset

Housing as investment / asset

Housing as Commodity

Housing as Commodity

Personal Safety and Health

Financial Security / Asset & social status

Home-based micro-enterprise

Poor people build gradually, over time ≈ small, incremental loans; compatible with microfinance loans

Progressive Build