This project is located in Lekhnath municipality, in northern-central Nepal. Serving low-income residents that are unable to access traditional housing finance, Lumanti provided a 50% guarantee to Kamana Bikash Bank for loans to project clients. In this way, Lumanti have been able to leverage private finance and encourage banks to lend to income groups that they previously considered too risky.
The clients used the loans to construct detached, single-storey buildings that could be incrementally extended in the future, or to upgrade their existing homes. Lumanti also provided a team of community architects which worked with households to help them design housing according to their needs. This project was designed to set a precedent, encouraging continued long-term entry of formal finance institutions into informal settlement upgradation.
Clients estimated to sit between 1st and 10th percentiles of incomes in Lekhnath
|Description||Type||Number Expected||Number Completed||Unit Size (m2)||Monthly Cost |
|Loan Length (months)|
|Self Build Loans||Self Build||71||71||34||4761||84|
|Home upgrading loans||Loan||29||29||34||4761||84|
|Finance Description||Finance Source||Interest Rate (%)|
|Self Build Loans||Kamana Bikash Bank||4.0|
|Home upgrading loans||Kamana Bikash Bank||4.0|
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Data last updated on 10/03/2021