Current Situation -
- Current slum inhabitants in Kathmandu - 50,000
- Total number of slum households - 2,763 .
- The number of squatter settlements has grown from 17 in 1985 to 63 today.
- Below the Bagmati Bridge, there are more than 310 households in what is supposed to be 'UN Park', although it has nothing to do with the United Nations. (Source: Nepali time click here to read more)
- Average Home Loan intrest rate charged by commercial banks - 14-16 %
- "According to government data, nearly 430,000 families live in sub-standard housing in Nepal. The gap between the supply and demand of decent and affordable housing in Nepal is wide. In a rough estimation, about 70,000 new homes per year would need to be built to close the housing gap in Nepal." source:
HABITAT FOR HUMANITY NEPAL
Picture source: Nepali times, grey dots show the slum settlements around Kathmandu
Current Solution:"
Housing Micro-Finance (HMF) programs features prominently among organizations that address the shelter needs of the urban and rural poor in Nepal. In 2005 HFH Nepal pioneered a Save and Build approach that offers housing finance to those who would otherwise not get a loan. Save and Build brings together low-income families in a community to form saving groups to save funds and materials to repair, renovate or build new homes. No collateral is needed and very simple documentation is required, which addresses some of the usual barriers that the poor face in accessing financing. Save and Build offers a flexible loan payment structure and construction process. Ultimately, this methodology supports holistic, sustainable community development, through house ownership."
"The impact of HFHI Nepal’s Save and Build program attracted the attention of the United Nations agency, UN-Habitat who was looking for partners for its pilot project, to break the poverty cycle by providing small housing loans to the urban poor such as slum dwellers in Nepal and five other countries. The landmark US$5 million Experimental Reimbursable Seeding Operations and other innovative mechanism (UN-ERSO) project provides loans of up to US$500,000. The Save and Build model with its incremental approach is seen as a way forward."
source: click here to read
Possible - Market Base Solution:
Current Solution:"
Housing Micro-Finance (HMF) programs features prominently among organizations that address the shelter needs of the urban and rural poor in Nepal. In 2005 HFH Nepal pioneered a Save and Build approach that offers housing finance to those who would otherwise not get a loan. Save and Build brings together low-income families in a community to form saving groups to save funds and materials to repair, renovate or build new homes. No collateral is needed and very simple documentation is required, which addresses some of the usual barriers that the poor face in accessing financing. Save and Build offers a flexible loan payment structure and construction process. Ultimately, this methodology supports holistic, sustainable community development, through house ownership."
"The impact of HFHI Nepal’s Save and Build program attracted the attention of the United Nations agency, UN-Habitat who was looking for partners for its pilot project, to break the poverty cycle by providing small housing loans to the urban poor such as slum dwellers in Nepal and five other countries. The landmark US$5 million Experimental Reimbursable Seeding Operations and other innovative mechanism (UN-ERSO) project provides loans of up to US$500,000. The Save and Build model with its incremental approach is seen as a way forward."
source: click here to read
Possible - Market Base Solution:
- Can affordable housing developers with collaboration of the organizations like Habitat for Humanity provide a market base solution that can be scale-able and self sustainable ?
- Should affordable housing loan by the commercial Banks considered "deprived sector loan" ?
- Can the poor and slum dwellers in Kathmandu afford to buy a house ?
Looks like this business model is working for the poor in Mumbai
- Monitor India - A Model that could be replicated...Watch the video .....
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