THIS EDITED VOLUME discusses the use of small loans to support housing investments within incremental housing strategies. Such an approach draws on, but extends beyond, the microfinance traditions that are used to support income generation in the South. Most households in the South are forced to build incrementally, due to expense and difficulties in securing mortgage loans.
Despite the growing use of such strategies by NGOs, governments and conventional microfinance agencies, there is very little documentation available either to those who are interested in learning about small-scale lending for shelter, or to those agencies that are currently offering loans. This book draws on about 8–10 specific examples of such initiatives in its discussions, although reference is also made to a much larger number of programmes and agencies. Somewhat unusually, several papers extend the potential area of interest beyond the South, and consider the use of housing microfinance in the United States.
Specific chapters examine a number of general issues, including definitions, a background to housing microfinance, and best practice. Further chapters explore a number of particular aspects of the lending process, including market assessment, product design, construction assistance and land. Four chapters look at issues relevant to housing microfinance in the context of the United States. A final and concluding chapter offers advice to donors and government on how to support small-scale lending for housing expansion and improvement.