According to the World Risk Index 2020, the Philippines ranks ninth globally in terms of disaster risk, the second highest among Asian countries. By connecting homeowners to financing sources to upgrade housing, it’s possible to not only reduce this risk but also to generate community involvement, develop safer construction, and advocate for disaster-resilient housing.
Recent efforts by six microfinance institutions (MFI) to develop loan products for resilient housing that are within the borrowing capacity of low-income households are providing these kinds of opportunities.
By building the technical capacity of MFIs, increasing their funding sources for housing loans, and mitigating the risk associated with lending, we are strengthening financial pathways for a greater number of Filipinos to have access to climate-resilient housing. Collaborating with bigger lenders with higher financial capacities and risk tolerance will enable the flow of financial investment from the mainstream financial market and make larger funds available to MFIs. To date, over 40,000 have been reached by safer housing in the Philippines.