our objectives

The primary objective is to improve the basic living standards of low income rural people through the provision of funding to qualified intermediaries. Low incomes, informal employment and relatively remote rural regions disqualify end users from dealing with major commercial banks.

The RHLF approved retail lenders, on the other hand, know their communities and their markets well. They are able to lend to low income country people, keeping bad debts and arrears under control.

RHLF is one of the few organisations able to lend to people living on communal land and informal settlements because the house is not used as collateral. Housing finance organisations are conspicuous by their absence from most rural areas. In this market, transaction costs and credit risks are high.

Through its 37 retail lending clients since inception, RHLF has funded housing improvements for the rural poor. Typically, the final borrowers earn less than R9,800. The average loan size is R4,600. About 55% of ultimate borrowers are female.

The amounts seem too small to render real improvements in housing - but most final borrowers have resources of their own and gather many of their own building materials before they apply for a loan. A little money therefore goes a surprisingly long way. Many home owners pay off loans, then take further credit to extend their houses one loan at a time. This is the gist in the incremental building process.

The borrowers themselves, or very small-scale builders in the communities, undertake virtually all building. RHLF publishes guidance on home building and improvement and the retail lenders help borrowers to get the most out of their building rands.

To sum up, RHLF is in the business of making a responsible contribution to the long term social developement of rural communities by focusing on what really makes a difference in people's lives - improved housing conditions.

RHLF specialises in incremental housing and it goes where others hesitate to go. It practices gender equality, environmental soundness and its activities are based on true collaboration with retail lenders and educated consumers.

We believe a loan should be more than a transaction. It should be a considered two-way decision, looking beyond the numbers to the effect it will have on the lives of the borrower and his or her family.

The rates of RHLF retail lenders are competitive. It's the attitude behind the loan that makes the difference. Our members do not lend against superficial short-term desires - we cater for life-changing long-term needs.

RHLF and its clients see themselves as builders, not just lenders. Building homes, building relationships, building better lives.