Housing Microfinance

1,137 views
1,094 views

Published on

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,137
On SlideShare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Housing Microfinance

  1. 1. Meliza
H.
Agabin
 (With
thanks
to
colleagues
Anthony
Petalcorin

 and
Mark
Guillermo)
 2009 RBAP-MABS National Round table Conference May 12-13, 2009 Hyatt Hotel and Casino Manila
  2. 2. What
is
HMF?
 Home
Improvements
 “The application of microfinance House
Construc9on
 principles and House/Lot
Acquisi9on
 methodologies to the provision of shelter finance.”*
 -  mall loan amounts! s - short-terms loans! - alternative forms of Microentrepreneurs
 Households
that
have
 no/limited
access
to
 collateral! who
rely
on
 decent
housing
 microenterprises
for
a
 -  regular amortization ! living

 */CGAP!
  3. 3. What
is
HMF?
 Home
Improvements
 Loans and other financial services to low-income households: • mprove or repair existing homes, I House
Construc9on
 •  onstruct a new home in stages C •  urchase a new home, P House/Lot
Acquisi9on
 •  uy land B • nstall or improve utilities and I other basic services. Excluded: the financing of consumer items such as refrigerators, ranges, furniture, TV sets, etc. Microentrepreneurs
 Households
that
have
 who
rely
on
 no/limited
access
to
 microenterprises
for
a
 decent
housing
 living


  4. 4. Microenterprise
vs.
Housing
Microfinance
Loan

 MEP
 HMF
 Small
loan
size
 Larger
loan
size
 up
to
P150K
 up
to
P300K
 Short
 Longer
 repayment
 Repayment
 term:
Not
more
 Term:
up
to
3
to
 than
12
months
 5
years
 




RBAP‐MABS
Program
has
submi3ed
the
Micro
Housing
Loan
Product
 Procedures
to
the
BSP
for
final
approval.

Loan
sizes
are
consistent
with
 HUDCC
approval.

  5. 5. Market
Research
Findings:
 

 Clients
 Survey conducted Surveyed
 485
 by MABS & MICRA Owns
a
House
(72%)
 349
 in August 2008 30%
No
Legal
Title
 105
 shows: 17%
Living
for
Free/RenWng
 59
 11%
RenWng
 38
 37%
Own
a
land
 129
 - Excellent potential - Majority owns a home - Majority of businesses are home based
  6. 6. Market
Findings:
 •  More
demand
for
home
 improvements.
 MEP
 HMF
 •  Home
repairs
e.g.
roof,
walls,
 kitchen
and
extensions,
are
 funded
mainly
from
personal
 cash
savings
(72%)
including
 savings
in
building
materials.
 •  Some
have
already
used
some
of
 their
previous
bank
micro
loans
 for
home
improvement.

  7. 7. Who
needs
HMF?
 Microentrepreneurs
who
 Households
that
have
no
or
 rely
on
microenterprises
for
 limited
access
to
decent
 a
living

 housing
 Rural banks should develop a range of housing microfinance products intended to respond to the need of low-income entrepreneurial families to improve the quality of their homes or build new ones.
  8. 8. Benefits:
 Bank
 Clients
 • CompeWWve
Edge
 • No
hard
collateral
 • Client
retenWon
 required
<
50K
 • Diversity
of
loan
 • Fast
loan
 products
 approval
 • Improve
field
 • Longer
term
 staff
producWvity
 • Easy
and
 • Increase
 affordable
 profitability
 installments

  9. 9. Results
of
the
Pilot
Test:
 Pilot
tested
in
August
2008
in
Green
Bank,
CanWlan
Bank
&
GM
 Bank
with
2
branches
each
iniWally
parWcipaWng.
 ComparaWve
Performance:

  10. 10. CLIENT
STORIES
FROM
PILOT
BANKS

  11. 11. CanWlan
Bank
Client
Mr.
Hingpit
received
a
loan
 to
complete
construcWon
of
new
home

 Old
house
of
Mr.
 Visited
by
MABS/USAID
a
 few
weeks
ader
receiving
 Hingpit
 70K
HMF
Loan
 A vegetable vendor & microenterprise bank client of Cantilan Bank for over seven years.
  12. 12. Green
Bank
Client
Sonia
Melo,
has
received
3
 loans
for
various
home
improvements
 1st
Loan
Window
Grills
 2nd
Loan
Room
ParWWon

 3rd
Loan
Ceiling
 Next
Loan:
Room
RenovaWon



  13. 13. Green
Bank
Client,
Herminia
Ferrer,
with
exisWng
micro
agri
loan,
 borrowed
P20k
home
improvement
loan
with
6
mos.
term.

 Ceiling
 Overhead
cabinet
 Carpenter husband does repair Window
Grills
 works.
  14. 14. 
Green
Bank
Client
Herminia
ferrer
   The
couple
plans
to
improve
their
store
–
including
cemenWng
the
flooring
 Next project is productive housing - improve store space Proposed
Improvement

  15. 15. GM
Bank
Client
Angelina
Valerio
 •  oultry supply & grocery business P •  pplied for P60K, 6 months A
  16. 16. Plans Targets Seek BSP approval to increase loan size  2nd Quarter 2009 and loan term for lot and house acquisition loans Rollout to additional banks 3rd Quarter 2009 The potential of housing microfinance depends on the (rural bank’s) ability to move beyond the confines of its original product characteristics and more deeply understand and respond to the needs of its clients. - ACCION
  17. 17. THANK
YOU.


×