Credit is a real challenge for low-income families in Uganda’s cash-based society. In Uganda, the poor and low-income earners have very limited access to long-term financing for housing, which is almost invariably limited to commercial banks offering formal, multiyear mortgages. Only 2 percent of the Ugandan population which is a population of 47 million, is able to afford typical loan rates. Through access to housing microfinance, households in sub-Saharan Africa can improve their housing and their quality of life.

The Housing Microfinance (HMF) Program is a credit transaction for low-income families to help finance their housing needs. The program is divided into Wholesale lending and Retail lending respectively.

If many Micro Finance Institutions (MFIs) are offering housing loans, it will assist in increasing the availability of housing options for 80% of the countries low-income families beyond Habitat’s direct influence. The short-term objective is to assist families to improve their housing conditions using MFIs as implementing institutions.

Habitat for Humanity’s Retail lending (HMF) supports low-income households especially those working in the informal sector to undertake incremental housing improvements through the provisions of home improvement loans. Our offices are currently in Lugazi and Luweero Districts.

Wholesale lending – the essence of the wholesale lending to microfinance institutions ( MFIs and SACCOs) is to influence the Micro Finance Industry in Uganda to take on HMF as a viable loan product with an objective to increase the availability of housing options for 80% of the country’s low-income families beyond Habitat’s direct influence. Our current partnership is with Nile Microfinance, an MFI working in the West Nile region of Uganda.

To date, over 30,000 families have benefited from this program.