Rural Housing Loan Fund

It is estimated that a big chunk of South Africa’s population is in rural areas.These rural areas have however remained under-developed for a long time. Research done has reviewed that the ultimate vision of creating vibrant, equitable and sustainable rural communities can be attained through the proficiency of finance. Rural Housing Loan Fund (RHLF) has stepped in to make all the difference.

Established in 1996, RHLF was established with initial grant funding from the German development bank, KFW. RHLF was set up as a wholesale development finance institution with the mandate of enabling low income earners to access small loans that they could afford to repay. Borrowers use these loans to incrementally improve their housing conditions.

As a wholesale finance institution, RHLF facilitates housing micro loans through intermediaries who may be retail, community based or NGO housing finance lenders.These partners borrow funds from RHLF and then lend to individual borrowers throughout the rural areas of South Africa, including small towns and secondary cities.These intermediary lenders reach all the nine provinces efficiently.

This rural finance continues to play a critical role in household strategies to reduce vulnerability. It assists the poor to smooth consumption and to build up assets greater than the value of the liability.

Rural Housing Loan Fund can be contacted on 0116212500.