This is an extension of the Itahari/Biratnagar Home Upgrading project, utilising repayments from existing clients to expand the loan offering to Kathmandu Valley.

Sewa has successfully worked with a local bank to finance this project through a bank guarantee initiative. As low-income individuals are often perceived as a financial risk, by Sewa providing a guarantee to the bank, confidence is therefore placed in the individual to repay the loan. This demonstrates a positive example to other banks of the ability of individuals on low incomes to successfully repay loans. Significant achievements have already been seen in this; previous Reall-funded projects of this type have tended to require a guarantee of 50% from the partner, but Sewa were able to negotiate a 20% guarantee.

Approximately 70% of the families use the funds to construct a new home, fully serviced with household sanitation, water and electricity. The remaining 30% will finance the extension or upgrading of their existing homes. All clients had their previous homes badly damaged or destroyed by the 2015 earthquakes.