INCREMENTAL HOUSING FINANCE

NHFC offers wholesale funding in a form of structured loans to Retail Finance Intermediaries (RFIs), who are on-lending to qualifying low and middle income homeowners to improve their housing condition on an incremental/gradual basis. Acceptable end user loan usage includes building a new house, house extension, fixed improvement to a house, connecting to utilities (water, sewerage and electricity), energy efficient retrofits (including solar energy, insulation and other energy innovations), water harvesting, fencing and productive housing.
Incremental Housing Finance (IHF) is facilitated to empower both rural and urban low- income earners to improve their living conditions. NHFC aspires to see Intermediaries grow to a point where they can access funding from other institutions, thus crowding in the private sector as a funding partner to the NHFC.

QUALIFYING Criteria

The borrowing entity, whether commercial Micro-Finance Intermediary or Community Based Organisation such as Co-operative Financial Institution or Cooperative, must be a registered legal entity
Registered as a credit provider with the National Credit Regulator and willing to supplementary register as a developmental credit provider
The MFI must be willing and able to lend in line with the core NHFC mandate
Cashflow projections must be financially viable per NHFC criteria
Equity contribution is required and is determined on a case by case basis to enable acceptable gearing levels.