Housing Finance Toolkit Created for Microfinance Lenders

Habitat for Humanity and the Citi Foundation have created a toolkit to provide technical training and tools to encourage microfinance institutions around the world to include or enhance housing microfinance products in their portfolios.
It is called the Housing Microfinance: Product Development Toolkit and is intended have these institutions make small, affordable loans that low-income families can use to improve their housing incrementally. It was developed by Habitat’s Center for Innovation in Shelter and Finance with lead sponsorship by the Citi Foundation and additional support from the Multilateral Investment Fund.
“Because much of the developing world produces housing in stages as families assemble the materials and resources, Habitat for Humanity International has made housing microfinance a strategic focus,” said Mike Carscaddon, executive vice president, International, Habitat for Humanity International. “Our hope is this toolkit can help increase access to financial services needed by low-income families worldwide.”
According to the Economic Research Department of Rabobank, Nederland, roughly 4 billion people living in developing countries lack access to formal financial services.
The toolkit is available in English and Spanish, and contains a variety of modules that provide resources and strategies for developing sustainable housing microfinance programs, including market research, product design, pilot planning and implementation, and housing support services. Future editions will cover topics such as secure tenure, micro mortgages, micro savings, and the expansion of the housing support services module.
“This toolkit is an important step toward increasing the supply of financial products and services that address the housing challenges and needs of low-income communities," said Pamela Flaherty, president and CEO of the Citi Foundation.