Housing microfinance remains a nascent product. While housing and home improvement microloans have piqued the interest of MFI and practitioners, overall, it remains a small part of lenders' product portfolios. Nevertheless, housing microfinance is gaining ground as a viable standalone product and as promising strategy with which to tackle housing shortages in the developing world. For newcomers, detailed research needs to be conducted into the extent of the market, client-specific housing needs, and an organization's readiness to roll out a housing product.
Sample projects for microfinance consulting and SME development include:
Market Research for Home Improvement/Low Income Housing Loans
Clients: Dakahlya Business Association for Community Development (DBACD) and the International Finance Corporation (IFC)
Partner: ShoreBank International (SBI)
2011 Project – Ongoing
The DBACD is looking to further develop its housing loan portfolio to meet the demand in Dakahlya. To this end, EDG in a collaboration with SBI, is carrying out a detailed study for home improvement and low income housing loan provision. The first component of the two-part assignment entails a comprehensive market assessment that will gauge overall demand in terms of the number of clients, portfolio size, and market segmentation. The assessment will also account for demand distribution in terms of geographic dispersal, client income levels, and types of housing. The second component involves an institutional assessment of the DBACD and any capacity building measures it would need to expand its housing finance portfolio.