Lekhnath Bank 2
- Status: Complete
- People Housed: 400
- Country: Nepal
- City: Lekhnath
- Partner: Lumanti
- Year Approved: 2018
This project is located in Lekhnath municipality, northern-central Nepal. As an extension of Lekhnath Bank project it built on the success of its first phase, providing low-income residents with access to housing finance. Lumanti provided a 50% guarantee to Kamana Bikash Bank for loans to project clients. In this way, Lumanti have been able to leverage private finance and encourage banks to lend to income groups that they previously considered too risky.
The clients used the loans to construct detached, single-storey buildings that could be incrementally extended in the future, or to upgrade their existing homes. Lumanti also provided a team of community architects which worked with households to help them design housing according to their needs. This project was designed to consolidate its previous success, encouraging continued long-term entry of formal finance institutions into informal settlement upgradation.
Client Data
Clients estimated to sit between 1st and 10th percentiles of incomes in Lekhnath
| Description | Type | Number Expected | Number Completed | Unit Size (m2) | Monthly Cost (Local Currency) | Loan Length (months) |
|---|---|---|---|---|---|---|
| Self Build Loans | Self Build | 82 | 82 | 34 | 4761 | 60 |
| Home upgrading loans | Loan | 18 | 18 | 34 | 4761 | 60 |
| Finance Description | Finance Source | Interest Rate (%) |
|---|---|---|
| Self Build Loans | Kamana Bikash Bank | 4.0 |
| Home upgrading loans | Kamana Bikash Bank | 4.0 |
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Data last updated on 30/06/2022