Credit for Home Improvements for the Low-Income Sector in Peru

In August 2008, IFC commissioned LFS to assist two regional MFIs in Peru in the implementation of a home improvement loan product for the low-income population.

The first step of the project was a market study to analyse the potential demand and the existing supply of housing finance in the two provinces where the MFIs were operating. Based on the result of his study, IFC and the two MFIs identified the existing housing finance opportunities in each province and determined the market, where the first pilot projects would be launched.

Thereupon, LFS developed a home improvement loan product for the two MFIs and elaborated business plans for the implementation of the new product in the two MFIs.