Shelter Finance for the Poor Series Synthesis

This paper offers quotes and short case studies from the Shelter finance for the poor initiative. It makes three central points:

• there is strong demand from poor people for housing finance services tailored to the way they build;
• lessons are emerging in large part from microfinance institutions building on earlier successes with working capital loans, and innovating with new housing loan products;
• the large potential for achieving scale and sustainability can be realized if financial institutions, governments, and donor agencies work in concert.

Concludes that the poor are reliable clients who are willing to pay the full cost for cost-effective services tailored to their needs. New products from the existing generation of microfinance institutions - such as shelter finance - are proven successes and will pave the path for commercial banks, mortgage finance companies and private builders to offer services to the poor.