Navigation: Global Nepal Itahari/Biratnagar Home Upgrading

Itahari/Biratnagar Home Upgrading

  • Status: Construction
  • People Housed: 488
  • Country: Nepal
  • City: Itahari/Biratnagar
  • Partner: Sewa
  • Year Approved: 2015
Total Invested
NPR 10,176,000
Total Invested
$87,861
Delivery of Homes
Total Expected
Completed
Self Build
236
114
Improvement Loan
8
8
Project Overview

This home loan project provides financial and technical assistance to families living on low incomes in informal settlements within the cities Itahari and Biratnagar. Sewa has successfully worked with a local bank to finance this project through a bank guarantee initiative. Sewa’s provision of bank guarantees lowers the perception of financial risk often attributed to people living on low incomes, giving the banks the confidence to lend. This demonstrates a positive example to other banks of the ability of individuals on low incomes to successfully repay loans. Significant achievements have already been seen in this; previous Reall-funded projects of this type have tended to require a guarantee of 50% from the partner, but Sewa were able to negotiate a 20% guarantee. Following successes with the initial phase of loans, Sewa negotiated with the bank for the money to be revolved for a second time, resulting in expected units doubling to 540.

Most clients work as labourers in construction or factories, or as small-scale business owners. Approximately 70% of the families use the funds to construct a new home, fully serviced with household water, sanitation and electricity. The remaining 30% will finance the extension or upgrading of their existing homes.

122
Homes Completed
122
Homes Occupied
116
Connected to Electricity
122
Connected to Water and Sanitation

Client Data

Displayed In
Client Monthly Household Incomes

Clients estimated to sit between 51st and 60th percentiles of incomes in Itahari/Biratnagar

Mean
25,000 NPR
216 USD
40th percentile at year of occupancy NPR 20,087
40th percentile at year of occupancy $173
Household Demographic Data
Household Size
4.00
Proportion Female
50.0
Proportion Children
20.0
Proportion Elderly
20.0
Housing Information
Description Type Number Expected Number Completed Monthly Cost
(Local Currency)
Loan Length (months)
Loan guarantee project where Sewa provide a 20% guarantee to bank to provide a NPR 400,000 loan for construction. The rest of the cost is covered by the individual. Self Build 236 114 6744 84
Loan guarantee project where Sewa provide a 20% guarantee to bank to provide a NPR 400,000 loan for construction. The rest of the cost is covered by the individual. Loan 4 8 6744 84
Finance Description Finance Source Interest Rate (%)
Loan guarantee project where Sewa provide a 20% guarantee to bank to provide a NPR 400,000 loan for construction. The rest of the cost is covered by the individual. Laxmi Bank 11.0
Loan guarantee project where Sewa provide a 20% guarantee to bank to provide a NPR 400,000 loan for construction. The rest of the cost is covered by the individual. Laxmi Bank 11.0

Project Finances

Displayed In

Investments — Reall to Affordable Housing Partners

Total Project Investments
NPR 10,176,000
$ 87,861
Loans
NPR 10,176,000
$ 87,861

Based on exchange rate on 31/12/2020

Funds Lent by Partners to Households
Funds Lent by Partners to Households
NPR 47,050,000
$ 406,236
Funds Repaid by Households to Partner (to date)
Funds Repaid by Households to Partner (to date)
NPR 17,478,459
$ 150,911

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Data last updated on 10/03/2021