This project is situated in Lalitpur, which is located in the south-central part of Kathmandu Valley. It was fully financed by revolved funds from previous Lumanti projects, which is a great example of how housing finance can be used cyclically to have greater impact. Building on the success of phase 1, Lumanti lent funds to the Thecho Mahila Jagaran (Women’s) Cooperative, which in turn allocated individual loans to member households. The clients are required to repay their loan, using an agreed repayment schedule, with the funds revolved again by Lumanti to support other housing improvement projects throughout Nepal.

The majority of clients chosen for this project resided in housing which held multiple threats to their health and security and often lacked access to basic services such as water. Lalitpur also received significant damage from the 2015 earthquake, which displaced nearly 2.8 million people, causing many families to lose their homes. As part of the project the community was trained in housing and infrastructure construction, and given technical, financial and management skills. This allowed each household to construct a safe, permanent house fully serviced with electricity, household water and sanitation, or to upgrade their existing home.