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Term paper on role of microfinance in sustainable development
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Housing Microfinance
“Inadequate sanitation and housing threaten the lives and health of some 600 million urban dwellers world-wide.” – CGAP (Bonnie Brusky)
This research paper will concentrate on the innovation of housing microfinance. Housing microfinance is helping to give loans to individuals that are suffering from poor infrastructure. This type of microfinance will aid in increasing the level of living standards. This paper will analyze the current organizations that deal with housing microfinance and it will implement new ways that it can be implemented. Housing microfinance will be evaluated on the impact it has had to date and the future implications of this innovation at a local, national, and international level.
Housing microfinance involves an increase in personal and productive assets. This innovation works with creating opportunities for home improvement loans, renovation plus expansion, construction, land acquisition, and basic infrastructure opportunities for individuals that cannot utilize or attain loans through the regular system. The biggest involvement of housing microfinance is through home improvement loans that have allowed for people to enhance their living standards
The demand for housing microfinance is high. Indeed, microfinance institutions (MFIs) say that clients already channel a good portion of microenterprise loans to home improvement. Shelter is a basic human need that helps ensure personal safety and health. Housing microfinance offers small, incremental loans that fit with the way poor people build: progressively and over time. The home is a personal asset that usually appreciates in value over time. Thus, home improvement not only enhances living conditions, it is an investment. Microentrepr...
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Mills, Sophie. 2007. "The Kuyasa Fund: housing microcredit in South Africa." Environment & Urbanization 19, no. 2: 457-469.
P.J., Manoj. 2010. “Prospects and Problems of Housing Microfinance in India: Evidence from “Bhavanashree” Project in Kerala State.” Microfinance Gateaway. no. 19: 178-194.
Rust, Kecia. 2007. "The role of housing microfinance in supporting sustainable livelihoods." Housing Finance International 22, no. 2: 42-49.
Rust, Kecia. 2013. "Housing finance news from Africa: A focus on housing microfinance." Housing Finance International 27, no. 3: 6-7.
Smets, Peer. 2006. "Small is beautiful, but big is often the practice: Housing microfinance in discussion." Habitat International 30, no. 3: 595-613.
One fundamental principle of the Tiny House Movement is that less equals more. Furthermore, the less space one acquires, his or her expenditures will likewise be lessened. By downsizing, owners "allot[s] one-third to one half of their income for the next 15 years for mortgage payments" (Maglalang 31). Due to the affordability, this comfortable style of living has become available to most citizens in the United States. Life in a tiny house provides a viable shelter that can accommodate all, even the underprivileged (Priesnitz 12).
Reiley, Stephanie. “Issue 10 – Why a Tiny Home?” 27 July 2009. Web. 2 Mar. 2013
It is estimated that, “each year, more than 3 million people experience homelessness, including 1.3 million children” (NLCHP). Clearly poverty and Homelessness come hand in hand, and the economy downfall has only contributed to this growing crisis. “Homelessness stems from a lack of affordable housing. Increasing rents, destruction of traditional low-income housing, and cuts in federal housing programs threaten affordable housing with extinction” (NLCHP). Most people in poverty have a housing affordability crisis, which means that they pay more than half of their income for rent, so therefore they have to buffer to deal with unforeseen expenses.
The housing boom created an illusion of ever increasing home equity. It was difficult to walk away from potential homes that seemed good on the surface, but in reality were either money pits or less than desirable. For the uninitiated, making sense out of the chaos when things start to go wrong is an emotional process that lends itself to the gradual disposal of the rose-colored glasses. The upkeep and maintenance that homeownership requires of the inexperienced homeowner, particularly an older home, is comparable to taking on a new entry-level job with diminishing returns. There is a prevailing chaos amid the turmoil of a broken water pipe during a holiday weekend.
To achieve the American dream is a great accomplishment that requires financial adequacy. Due to financial insufficiencies, owning a home can be difficult, if not impossible for many individuals of lower income. Economic fluctuations often cause inconsistency in housing prices and availability.3 The price of a home correlates to the cost and availability of materials, needed manpower and the duration of construction. These logistical obstacles need to be overcome if the American dream is to be attained by the majority.4 To engineer a faster, more cost effective means of production is a challenge, but for the solution to be well designed and well crafted is a far greater task.
Housing in inner city areas was poor quality and in a 1991 census it was found that over 1 million homes in the inner cities still lacked the basic amenities of bathrooms, WC’s and hot water. The occupants have low incomes and are often elderly, young
Measures to expand and improve public delivery systems of drinking water, contributing to a reduction in morbidity and mortality associated with enteric diseases, because these diseases are associated directly or indirectly with providing substandard water or poor provision water. Currently, 1,400 million people lack access to safe drinking water and nearly 4,000 billion lack adequate sanitation. According to estimates by the World Health Organization (WHO), 80% of diseases are transmitted through contaminated water.
Buying and owning your home is part of the American dream. Although the dream itself has since changed, the home still remains the main focal point. Today owning a home doesn’t necessarily mean a house. People now buy duplexes, cooperative apartments, and condominiums. For some families it could take up to a couple of generations before it’s able to have the capabilities of buying a home. To many people it means a certain achievement that only comes after years of hard work. It is a life altering decision and one of the most important someone can make in their lifetime. The reasons behind the actual purchase could vary. Before anything is done, people must understand that it’s an extraneous process and it is a long term project.
A simpler, easy-going way of life is being adopted by people young and old, single and married, employed and not so, across the nation. Tiny houses are residential buildings typically less than 600 square feet – larger than a shed, but not quite big enough to be called a cottage. They have nearly all the facilities and rooms a regular home has, but in a more compact area, without all the “excess” space. This trend of down-sizing, also known as the Tiny House Movement, isn’t a new one. Rather, it’s the revival of a past idea. In the 1950’s the average American single-family home was 980 square feet. As of 2009, that average has increased by 275% to an enormous 2,700 square feet. Garages take up about 15% of that size while appliances fill another 10%. American refrigerators are double the size of those in Europe, and use enough energy to power six televisions for 10-12 hours per day (Strobel). The purpose of tiny houses is to reduce the amount of space in one’s home in order to reduce the amount of clutter in one’s life – to realize what is a w...
In order to understand the concept of financialization and the housing market on the global and local level, one must know that there is a global pool of money that is simply the worlds savings bank. In 2000 the pool had $36 trillion and has since doubled in size (Blumberg 2008). Its most recent profit increase was a result of developing countries and cities such as India, Abu Dhabi, and China making money. This doubled the cash pool available for investments, but left fewer solid investments for the taking. The solution was residential mortgages and the US housing market. The investment managers thought the low-risk high-return investment in the housing market was a good, stable idea. The glo...
Hopper, Kim. “Housing the Homeless.” Social Policy 28.3 (1998): 64+. Academic OneFile. Web. 29 Oct. 2013.
The lifestyle of people across the world is developing rapidly. As there is a growing concern for people about the lifestyle and way of living, the scope for the microfinance industry is also at a growing pace. A large number of people across the world prefer finance for the purpose of purchase of consumer durables as well as lifestyle products. As the credit card EMI options are more expensive, people prefer NBFCs for the purpose of consumer durable loans. The project done in bajaj finserv explains the role of NBFCs in the consumer durable loans and the procedure undertaken in order to disburse the consumer durable loans.
Microcredit can be defined as small loans, or microloans, for people around the world in extreme poverty to help spur entrepreneurship. The issue of microcredit is extremely important in the world’s economy. Poverty alleviation and economic development are the primary goals of microcredit programs, that is why they began in the developing countries of Asia and Latin America, economist Muhammad Yunus and his Grameen Bank in Bangladesh are credited of pioneering this financial innovation (Smith, Thurman, 2007). After acquiring a loan, impoverished people get involved in self-employment projects that help them to start a business and begin generating income and in many cases leave poverty. Microcredit offers loans to poor people without requesting any financial history from them. These loans help to improve the quality of life of individuals and communities through commitment. In recent years, the idea of giving small loans to poor people became the darling of the development world, giving a way to propel even the poorest people into better lives (Jolis, 2011).
1.Christen, Robert Peck; Rosenberg, Richard & Jayadeva, Veena “Financial institutions with a double-bottom line: implications for the future of microfinance” (July 2004)
However, it is understood that money is the major issue with government intervention. Perhaps, new funding can be created for solely shantytowns fundraising. Whatever it is, shantytowns can be on the decline with help from others. With about one-third of the urban population of developing countries living with the overcrowding, disease, poor infrastructure, child labor, and sexual exploitation, that come with shanty towns/slums, shantytowns have both hurt and helped people struggling with poverty worldwide, with large shantytowns in South America, Africa, and China. To slow down the growth of shantytowns in these parts of the world, the government and motivated groups of people can provide the necessary materials to better the living conditions in shanty