Microfinance has been an effective tool to increase access to decent housing for low-income communities, where very few people are part of the formal financial system, explained Juan Mendoza, financial manager of Habitat for Humanity in the Dominican Republic.
“At Habitat Dominican Republic we recognize the needs of families, and for this reason, we have designed adequate financial products for microfinance institutions to give opportunities to those less favored. Along with training on savings, healthy housing, family budgets and other innovations as necessary, “added Mendoza.
Housing microfinance refers to non-mortgage loans that are intended to finance home improvements, repairs, and phased construction. They are characterized by elements common to microfinance, such as: small loan amounts, short terms, market-based pricing, non-mortgage guarantees.
A house is usually proclaimed as one of the “big three” priorities for low-income families in the world, along with food and education, that is why Habitat Dominicana and the main microfinance institutions, with social awareness in the country, They have teamed up to offer microfinance for housing, ensuring that loans help build a safe and durable home for families, making a difference between these and consumer loans.
Housing access services are increasingly being accepted as an important and complementary value to socially oriented, responsible and solid housing microfinance.
Habitat for Humanity Dominican Republic contributes to the country in improving the living conditions of families that are part of the qualitative housing deficit, through products that facilitate access to micro-financing for the improvement and repair of homes for low-income families.