LOW INCOME HOUSING FINANCING

PROJECT PROPOSAL

Project Aim:

SELCO Foundation would like to collaborate with Syndicate Bank to enable 10 low-income households to build durable and sustainable houses in the Old Baiyyapanahalli region in Indira Nagar, Bangalore. We would like to leverage the SyndKuteer scheme to enable financial inclusion for the households.

The need:

The Old Baiyyapanahalli community has 1000 households with an average of 4 members per household. Most of the families belong to middle and poor income levels earning Rs.10,000 to Rs.20,000 per month. Men and women are employed not only in the service sector (labor, drivers, mechanics, house help etc.) but also have government jobs and corporate jobs (peons, sweepers), and a few run their own businesses (hawkers, petty shop owners etc).

Most of the people live in homes that are either self-built or constructed with local assistance by under-skilled labour. These self-built housing structures have raised concerns of safety, quality and moreover are devoid of any formal planning strategies requiring high maintenance expenditure.

This project, through the construction of 10 households during its course would assist in bridging not only the knowledge gaps, but also provide access to designer expertise and relevant financial institutions that could completely facilitate the entire process of building a safe and healthy home in a sustainable and replicable way.

OBJECTIVES

  1. Financial Linkage: Introduce low income communities to the formal finance sector to increase their accessibility towards formal loans.
  2. Mason Support: Disseminate knowledge of good construction practices to masons, contractors to help build the homes.
  3. Material and Construction: Promote usage of materials, products and ideas that contribute towards lowering cost of construction, human well-being and reduces carbon footprint of construction.

Infrastructure:

  • Predominant house sizes are 15 x10 ft and consist of mixed construction of GI sheet, asbestos, corrugated sheets and brick structures.
  • The community follows basic row houses, with narrow street widths, varying from 0.9m to 1.8m. Most streets are cemented while others are just compacted earth.
  • There is a water access point at the beginning of every street, and all houses have a drainage connection, piped to sewage. Almost all households are electrified.
  • Possession documents are being issued to occupants by the BDA.

CONCEPT DESIGN PROPOSAL


The approximate plot size per household at Old Baiyyapanahalli is 10’ x 15’. The major problem to be tackled here is that most houses are covered on three sides by houses that are already built. Eco friendly and cost cutting techniques are being used to construct these homes. Two options have been designed for the available plot sizes.


FINANCIAL BREAKUP

S.No / Particulars / Amount
1 / Excavation + Back Filling / Rs. 5,000
2 / Foundation + Plinth / Rs. 70,000
3 / Walling + Lintel / Rs. 70,000
4 / Roofing (RCC + Sheet) / Rs. 70,000
5 / Labor –Masonry, Plumbing, Electrical, Carpentry / Rs. 80,000
6 / Staircase / Rs. 30,000
7 / Miscellaneous (Water, Electricity, Transport) / Rs. 25,000
Total / Rs. 3,50,000 (Double storeyed)

Partners:

Syndicate Bank:

  • House Financing for the households and due-diligence for the same.
  • Support with BC or pigmy agent to support repayments collection

Model: Thesecond storey will help the household earn rental income that can enable them to repay the loan more promptly. The rental income is expected to be in the range of Rs.2,500 – Rs.3,500 per month.

Sl No. / Particulars / Amount (Rs.)
1 / Project Cost / 3,50,000
2 / Margin money / 20,000
3 / Interest Rate / 9.6%
4 / Tenure / 15 years
5 / Interest Subsidy (PMAY) / upto 6%
6 / EMI / 3,500

SELCO Foundation (and Partners):

  • Support with the construction and material procurement, to ensure quality and cost management.
  • Support with document collection, financial literacy of the community.
  • Monitor repayment and support with repayment collection.
  • Ensure maintenance of the households

TEAM FRAMEWORK

Collaborators | SELCO Foundation

SELCO Foundation is a grassroots level initiative set up in 2010, which develops and implements sustainable solutions for under-served communities. It is an open-source platform that implements and disseminates sustainable social innovations through an ecosystems approach.

Since its establishment the Foundation has worked in multiple urban and rural households, providing clean and efficient energy solutions, the goal being to ultimately impact the well-being and livelihoods of the inhabitants. Our efforts in the field have further emphasized the critical role that the overall physical environment has in working towards that goal. Whether it be through passive design strategies for lighting and ventilation (non-energy based), or material sensibility or spatial usage, a holistic approach to sustainability and efficiency has lead to interventions in housing.

Collaborators | FEDINA

Foundation for Education Interventions in Asia was started in 1983 with the aim of empowering the marginalized sections of our society. It was recognized by the Karnataka Government in the same year and by the Central Government Home Ministry in 1984. It has FCRA (Foreign Contribution Regulation Act) that entitles to receive foreign funds.

Fedina works in five Southern States namely, Karnataka, Tamil Nadu, Pondicherry, Kerala and Andhra Pradesh. From the beginning, its aim is empowerment of the marginalized sections of our society. Fedina wants to fight the structural marginalization that results from the way our society is organized (structured). Empowerment is understood as a long process of animation, of community building, leading to constitution of grass root organizations and federations that will be able to negotiate with the governments and other agencies and secure their rights.

Collaborators | Masons Ink

Masons Ink is an architecture firm based out of Bangalore. They are an all- encompassing design and construction firm with special focus on sustainable architecture and heritage conservation. They propagate the use of mud as a building material, and believe in the involvement of masons and other stakeholders in the process of design and construction.
Masons Ink also conducts hands-on training courses and workshops for masons, professionals and students of architecture on various techniques of construction and conservation.