A priority country, Reall has operated in Nepal since 2011.
Soaring land prices and increasing rural-urban migration have made it increasingly difficult for people living on low incomes to afford housing in Nepal, especially in fast-growing urban areas. As of 2014, 54% of Nepal’s urban population were found to be living in slums. In addition, recent natural disasters have left many more people needing further relief and housing reconstruction. According to a UN-HABITAT study, at least 40,000 new urban homes are needed by 2021.
Reall works in partnership with two organisations, Lumanti and Sewa. These partnerships have resulted in the setting up of a revolving loan fund with Lumanti, which provides affordable housing loans to people on low incomes through banks and cooperatives. This fund has successfully recycled over US$2.5m to date.
Considerable successes have been achieved in working with banks to provide housing loans to low income groups. Both Sewa and Lumanti have provided banks with guarantees against potential losses to encourage them to loan. Guarantees were originally offered at 50% of total loan cost, but in negotiation with banks these have reduced to as little as 10% as banks have gained trust in the ability of people on a low income to repay.
Based on exchange rate on 31/10/2020
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Data last updated on 10/12/2020