WASHINGTON, D.C., January 29, 2020 —Public policies and financial services that increase women’s access to housing finance in developing countries can benefit economic growth, improve women’s financial stability, and help develop a largely-untapped market for financial institutions, according to a study released Wednesday by IFC, a member of the World Bank Group.
The study, “ Her Home: Housing Finance for Women ,” provides country-specific insights into the barriers women currently face in obtaining housing finance, details the size and nature of women’s housing finance markets, and offers recommendations for policymakers and financial institutions to improve women’s access to finance and improve the lives of millions of women and their families.
The report, published by IFC’s Banking on Women business, also details the women’s housing finance market in three countries that have implemented policies to increase women’s access to housing and housing finance: Colombia, India, and Kenya. It found that the estimated market size for women’s housing loans is $23 billion in Colombia, $32 billion in India, and $15 billion in Kenya—despite the hurdles women face.
“Women who own their homes enjoy greater financial stability and independence and contribute more to their community’s economies,” said Paulo de Bolle, Senior Director of IFC’s Financial Institutions Group. “Financial institutions that offer housing finance services focused on women are better positioned to seize on opportunities in a growing market.”
The report’s highlights include:
· Women who are self-employed or work in the informal job sector often do not have income levels and income documentation that meet financial institutions’ lending requirements.
· Women frequently lack home and property deeds in their names, which are currently required by financial institutions to serve as collateral.
· Policies and financial products that address the specific needs of the women’s housing finance market exist, but on a very small scale.
· IFC’s Banking on Women business shows that women-owned businesses are less likely to default on loans.
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities where they are needed most. In fiscal year 2019, we delivered more than $19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
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