Though Nepal has seen strong economic growth over the past couple decades, it faces notable challenges in housing provision due to an already sizable affordable housing backlog, coupled with increasing rural-to-urban migration. Formal housing remains unaffordable for a majority of the population, and the country’s mortgage market is still in its early stages. For these reasons, many people live in incrementally built housing, which presents a market opportunity for housing microfinance.
Through a partnership with Habitat for Humanity Nepal and Habitat’s Terwilliger Center for Innovation in Shelter, one of Nepal’s largest microfinance institutions, Jeevan Bikas Laghubitta Sanstha Limited (JBLBSL) has been able to develop a housing microfinance product that is client-centric and promotes housing among low-income populations.
Source:
Terwilliger Center for Innovation in Shelter. (2022) Case Study: Achieving affordable housing through microfinance in Nepal. Habitat for Humanity: Terwilliger Center for Innovation in Shelter.
Link: https://www.habitat.org/our-work/terwilliger-center-innovation-in-shelter/publications-videos