Low-income populations have historically not had access to housing finance, due to perceived risk of the sector by financial institutions. Housing microfinance (HMF) has emerged as a solution to increase access to necessary housing funds, by providing small, nonmortgage-backed loans on the short term, often to support incremental building processes. While microfinance has been utilized in many countries, one of the most successful examples is Peru’s Mibanco, and its Micasa housing finance.
Mibanco is Peru’s largest microfinance bank, and it Micasa housing loan product has targeted those working in the informal sector, who typically would not be able to access other housing finance products. By May 2017, Micasa had reached over 201,000 clients, constituting nearly one-fifth of Mibanco’s total loan book. Mibanco operates within a mature and competitive microfinance market, and has found success due to the simplified and expedient loan processes of Micasa.
Source:
Terwilliger Center for Innovation in Shelter. (2018) Building the Business Case for Housing Microfinance. Habitat for Humanity Terwilliger Center for Innovation in Shelter.
Link: https://www.habitat.org/our-work/terwilliger-center-innovation-in-shelter/publications-videos