Navigation: Global Nepal Kathmandu Extension – Itahari Home Upgrading Project

Kathmandu Extension – Itahari Home Upgrading Project

  • Status: Construction
  • Country: Nepal
  • City: Kathmandu
  • Partner: Sewa
  • Year Approved: 2019
Delivery of Homes
Total Expected
Completed
Self Build
100
18
Project Overview

This is an extension of the Itahari/Biratnagar Home Upgrading project, utilising repayments from existing clients to expand the loan offering to Kathmandu Valley.

Sewa has successfully worked with a local bank to finance this project through a bank guarantee initiative. As low-income individuals are often perceived as a financial risk, by Sewa providing a guarantee to the bank, confidence is therefore placed in the individual to repay the loan. 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.

Approximately 70% of the families use the funds to construct a new home, fully serviced with household sanitation, water and electricity. The remaining 30% will finance the extension or upgrading of their existing homes. All clients had their previous homes badly damaged or destroyed by the 2015 earthquakes.

18
Homes Completed
18
Connected to Water and Sanitation

Client Data

Household Demographic Data
Household Size
3.70
Proportion Female
55.0
Proportion Children
36.0
Proportion Elderly
15.0
Housing Information
Description Type Number Expected Number Completed Monthly Cost
(Local Currency)
Loan Length (months)
Loan guarantee projects 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 100 18 6744 84
Finance Description Finance Source Interest Rate (%)
Loan guarantee projects 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

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Data last updated on 10/03/2021