Practical Guide for Housing Microfinance in Morocco

This report examines results from a quantitative survey conducted by CHF International (CHF) in Morocco to suggest housing finance guidelines for MFIs.

CHF conducted the survey in six Moroccan cities in 2004-2005, with a sample of 2,000 people. Results indicate that:

• Progressive building is well suited for Morocco, where clients desire larger loan amounts and longer terms than MFIs are willing to offer;
• Price lists of construction costs help loan officers to determine loan amounts and clients to understand competitive supplier costs;
• MFIs should pilot test new housing products to ensure market acceptance before using resources and systems for large scale rollout;
• Housing loans allow MFIs to reduce risks, maintain low delinquency rates and expand markets;
• Housing loans should be part of Moroccan MFIs' long term growth strategy.

The paper states that CHF will ensure that housing loans suit borrowers and institutions by working with institutions that have launched, or are about to launch housing loans. It also plans to disseminate key findings from pilot projects, in order to promote more housing lending in Morocco.