Housing is a basic part of our daily life, without which we become nomads and not humans. Food, shelter, and clothing are as essential as air, water, and food. Without shelter humans are exposed to a lot of threats and dangers and also the lifestyle remains like the olden early man.
We living in urban cities often don’t get the picture right about the underdeveloped people who struggle to get the basic needs. We think about decorating our homes, while they pray to have one! We think about having dinner at a particular restaurant, but they think about whether they would get dinner or not! Such is the plight of underdeveloped, developing nations, where humans do exist, but in a more pathetic form, who suffer from no money to help themselves and no job on the offer to earn.
In developing nations, underdeveloped nations, housing is one of the biggest issue faced by many people. How is the government there managing to give shelter to the less privileged? How can we help our fellow beings who have the extremely low income to help them sleep with a roof on top?
Here comes the Microfinance for housing!! Where the land prices are really not affordable due to poor income situation, and they don’t have access to loans and mortgages; microfinance helps the needy to build a basic shelter by giving the capital to build home, and after the first loan is done, they do provide to further expand the area.
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Microfinance is just like your bank loan services but offered by a different organization who are capable of giving smaller amounts. It’s nothing but a financial service offered by banks, or also called non-profit organizations, or co-operative banks, that helps the less privileged to lead a better life by providing capital at lower rates of interest and for a lesser span of time; and the most important without any warranty or guarantee needed.
Housing microfinance is a loan offered to have a house for the low-income people or even renovate an existing home, get some repairs done and so on.
Difference between loans and microfinance for housing:
The regular housing loans are high in interest and are offered only for newly built houses and with any collateral provided.
In microfinance housing loan, there is a loan given to renovate a constructed home, you get money in increments as and when you are capable of constructing, which reduces the burden on the people. It aims at giving smaller amounts and letting them utilize and then come back.