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Kohalpur Home Upgrading

  • Status: Construction
  • People Housed: 1,105
  • Country: Nepal
  • City: Kohalpur
  • Partner: Sewa
  • Year Approved: 2016
Total Invested
NPR 12,720,000
Total Invested
$107,479
Delivery of Homes
Total Financed
Completed
Self Build
261
208
Improvement Loan
39
39
Project Overview

This project provides home loans of NPR 400,000 to people living on low incomes around the centre of Kohalpur. The project is targeted at families with land already in place and offers financial as well as technical assistance for people to build their own low-cost homes equipped with water, sanitation and energy. The design of houses is community led, as is the planning process.

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. Following successes with the initial phase of loans, Sewa negotiated with the bank for the money to be revolved for a second time, resulting in expected units doubling to 540.

247
Homes Completed
221
Homes Occupied
150
Connected to Electricity
247
Connected to Water and Sanitation

Client Data

Displayed In
Client Monthly Household Incomes

Clients estimated to sit between 51st and 60th percentiles of incomes in Kohalpur

Mean
31,090 NPR
263 USD
40th percentile at year of occupancy
40th percentile at year of occupancy
Household Demographic Data
Household Size
5.00
Proportion Female
60.0
Proportion Children
25.0
Proportion Elderly
20.0
Housing Information
Description Type Number Expected Number Completed Unit Size (m2) Monthly Cost
(Local Currency)
Loan Length (months)
Loan guarantee projects where Sewa provide a 20% guarantee to bank to provide a NPR 400,000 loan for construction. The rest of the cost is covered by the individual. Self Build 275 208 34 6744 84
Loan guarantee projects where Sewa provide a 20% guarantee to bank to provide a NPR 400,000 loan for construction. The rest of the cost is covered by the individual. Loan 25 39 - 6744 84
Finance Description Finance Source Interest Rate (%)
Loan guarantee projects where Sewa provide a 20% guarantee to bank to provide a NPR 400,000 loan for construction. The rest of the cost is covered by the individual. Laxmi Bank 11.0
Loan guarantee projects where Sewa provide a 20% guarantee to bank to provide a NPR 400,000 loan for construction. The rest of the cost is covered by the individual. Laxmi Bank 11.0

Project Finances

Displayed In

Investments — Reall to Affordable Housing Partners

Total Project Investments
NPR 12,720,000
$ 107,479
Loans
NPR 12,720,000
$ 107,479

Based on exchange rate on 31/10/2021

Funds Lent by Partners to Households
Funds Lent by Partners to Households
NPR 87,550,000
$ 739,761
Funds Repaid by Households to Partner (to date)
Funds Repaid by Households to Partner (to date)
NPR 30,699,930
$ 259,402

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Data last updated on 30/06/2022