Kathmandu, Nepal - Nepal faces a significant housing challenge, with an annual demand for 136,000 housing units, while only 102,000 are being delivered-leaving a yearly deficit of 34,000 homes. For many, limited access to credit and financial resources makes building a home an unattainable dream. However, housing microfinance and customized loan products are emerging as viable solutions to bridge this gap and unlock untapped opportunities in the housing sector.
Recognizing this pressing need, Habitat for Humanity Nepal, in collaboration with the Nepal Microfinance Bankers’ Association (NMBA), organized the Microfinance Policy Discussion: Redefining Microfinance Products and Services. The event brought together key stakeholders to address challenges, explore opportunities, and reimagine microfinance as a tool for empowering families to access decent housing.
Pioneering Leadership and Inspiring Stories
The event was inaugurated by Habitat Nepal’s National Director, Eliza Sthapit, who emphasized the importance of innovative financial solutions for housing. NMBA President Ram Bahadur Yadav outlined the association’s vision and challenges, pointing out that while Nepal’s microfinance sector has strong governance, it struggles with technology adoption.
Jeevan Bikas Laghubitta Bittiya Sanstha Ltd CEO Sanjay Kumar Mandal shared moving accounts of individuals who have benefited from housing microfinance. One such story involved a mother who, due to limited space, had to send her children to sleep at neighbors’ homes. With access to a housing loan, families like hers can secure a safe and adequate living space, fundamentally improving their quality of life.
Fostering Innovation and Sustainability
A group discussion led by Nupur Maroti of the Terwilliger Center for Innovation in Shelter explored critical issues such as policy gaps, sustainability, and innovation in housing microfinance. This session encouraged reflection on real-world challenges and solutions, underscoring the need for collaboration among stakeholders.
Yuwaraj Siwakoti, a Green Financing Expert from Sahara Nepal, presented strategies for aligning microfinance with sustainable practices. Meanwhile, Nepal Rastra Bank Deputy Director Pramesh Pokharel discussed the central bank’s pivotal role in creating an enabling environment for evolving microfinance services.
The Way Forward
Supported by The Hilti Foundation and Jersey Overseas Aid, this landmark discussion underscored the transformative potential of housing microfinance in addressing Nepal’s housing crisis. By focusing on land ownership, essential infrastructure, and green financing, stakeholders aim to ensure more families have access to adequate, affordable housing.
As Habitat Nepal continues its efforts, it poses a crucial question: How can smarter services be designed to provide greater access to decent housing for those in need?
Stay tuned for further updates on Habitat Nepal’s initiatives and join the conversation as we work towards a future where everyone has a place to call home.
