This project served fifteen communities in Lekhnath municipality, northern-central Nepal. All families approved for the loans had private land ownership certificates and the project was set up to give those households access to housing finance, to construct safe, permanent housing or to upgrade their existing homes. Lumanti provided an 80% guarantee to Kamana Bikash Bank for loans to project clients. In this way, Lumanti have been able to leverage private finance for clients living on low incomes, and encourage banks to lend to income groups that they previously considered too risky.
As the first programme of its kind in Lekhnath, this project proved to be a successful precedent-setting project. Participation within the community was very high which raised the credit worthiness of low-income groups, encouraging further banks to invest in the affordable housing market.
The built houses were constructed with an emphasis on disaster risk reduction, achieved through infrastructure designs and appropriate settlement planning. Training in technical, financial and management skills was provided by Lumanti, and a team of community architects assisted clients in designing their housing according to their needs.
Clients estimated to sit between 41st and 50th percentiles of incomes in Lekhnath
|Description||Type||Number Expected||Number Completed||Unit Size (m2)||Monthly Cost |
|Loan Length (months)|
|Self Build Loans||Self Build||75||75||34||2380||84|
|Home upgrading loans||Loan||58||58||34||2380||84|
|Finance Description||Finance Source||Interest Rate (%)|
|Self Build Loans||Kamana Bikash Bank||4.0|
|Home upgrading loans||Kamana Bikash Bank||4.0|
Based on exchange rate on 31/12/2020
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Data last updated on 10/03/2021