According to UN-Habitat, about one in four people live in conditions that harm their health, safety and prosperity. A McKinsey Global Institute report suggests that the global population who live in substandard housing units will expand to 1.6 billion people by 2025.
Unlike affordable housing, home improvements provided via microfinance organizations can be financed incrementally with loans, and thus reach a wider and lower income demographic. Partners also provide project budgeting, work planning and best-practice construction education.
Who is Served?
Low-income households mostly living on <$10/day who typically have already received microfinance loans.
What is Delivered?
- Tailored individual credit (<$1,500) to be used for home improvements (floors, roofing, walls, water, sanitation, clean energy, etc.)
- TA customized to the borrowers needs, typically project planning/budgeting including home visit and sometimes including construction oversight or materials access support services
Why is it Impactful?
Household health, security and sense of dignity increase due to:
- Lower exposure to bad weather (roofs, walls and floors) and sources of disease (sanitation and water)
- Physical protection from robbers or unwanted intruders (walls, fences and windows)
- Improved confidence and sense of self-worth in the community
How is it Sustained?
- Loans are paid off by additional entrepreneurial activity or salaries
- TA is funded through grants or portfolio yields from loan products