RHLF

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RHLFs Mandate

• To empower people in rural areas to maximize
  their housing choices and improve their living
  conditions with access to credit from sustainable
  retail lenders.

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RHLF Housing Lending Model

• RHLF provides developmental credit for
  incremental home building.
• Total retail loan book of R176 Mio across
  currently 11 non-bank intermediaries.
• Scale of RHLF funded and leveraged debtors books
  totals R 680 m.
• Loans are structured as unsecured, personal
  housing loans no mortgage bond, no underlying
  repossess-able goods, no privileged access to
  clients salary or bank account.
• Loans are made strictly on the back of
  demonstrated affordability and good faith of the
  client.
• RHLF funded loans distributed via partner lender
  branches, loan agents and brokers, mobile sales
  offices, SAPO building material merchants.

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• Household income distribution
• over 50 of non-metro residents earn R1000-R3000
  per month 15 earn R3000-R7500
• Over 20 of metro residents earn R3000-R7500
  another 20 earn R1000-R3000

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• Financial access by income group
• 20 of non-metro households earning R3000 R7500
  are not formally banked.
• Over 30 of non-metro households earning R1000
  R3000 are not formally banked.

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Housing affordability
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RHLFs development impact
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RHLF Impact
All figures as of RHLF fiscal year end at
31-March.
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Nkangala
Northern Free State
Uthukela
Kgalagadi
Ehlanzeni
DPLG listed Rural Nodes
Sisonke DC
uMgungundlovu
Other Rural District Councils
Uthungulu DC
Francis Baard
Xhariep
Thabo Mofutsanyana
West Coast
Amatole District
Boland
Motheo
Overberg
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RHLF Impact Report by Province RHLF Impact Report by Province RHLF Impact Report by Province RHLF Impact Report by Province RHLF Impact Report by Province RHLF Impact Report by Province



Disbursements by province Loans funded by RHLF loan facilities Loans funded by other senior funders Loans funded by RHLF loan facilities Loans funded by other senior funders Total loans funded by RHLF lenders
   
   
Eastern Cape - Value Disbursed 14,376,182 15,341,244 9 5 6
Eastern Cape - Number of Loans 6,052 2,153 17 5 10
 
Free State - Value Disbursed 5,091,405 19,831,353 3 6 5
Free State - Number of Loans 1,205 2,609 3 6 5
 
Gauteng - Value Disbursed 44,481,075 121,170,698 27 36 33
Gauteng - Number of Loans 7,715 16,948 21 36 30
 
Kwazulu Natal - Value Disbursed 39,537,490 96,924,904 24 29 27
Kwazulu Natal - Number of Loans 12,653 12,818 35 28 31
 
Limpopo - Value Disbursed 10,751,486 6,968,766 7 2 4
Limpopo - Number of Loans 1,673 1,107 5 2 3
 
Mpumalanga - Value Disbursed 19,851,362 11,980,045 12 4 6
Mpumalanga - Number of Loans 3,612 1,767 10 4 6

Northern Cape - Value Disbursed 731,106 13,739,829 0 4 3
Northern Cape -Number of Loans 107 1,700 0 4 2
 
Northwest - Value Disbursed 22,173,493 18,950,729 14 6 8
Northwest -Number of Loans 2,136 2,792 6 6 6
 
Western Cape - Value Disbursed 6,051,590 31,679,891 4 9 8
Western Cape - Number of Loans 1,156 4,602 3 10 7
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Financial information
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RHLFs Priorities for 2008/09

• Increase exposure to major retail lending
  partners to take advantage of distribution
  networks created
• Target established entities to diversify into
  housing lending
• Continue to use influence to facilitate
  consolidation of and restructuring of financially
  weaker retail partners
• Conduct research in feasibility of Rural Housing
  Subsidy Voucher
• Raise additional wholesale funds by proving that
  rural people are a good credit risk

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Challenges and opportunities

• Challenges
• Affordability Higher inflation, food,
  transport.
• Funding RHLF and Retail Partners
• Acceptability of Incremental Housing Finance as a
  viable alternative to mortgage finance
• Opportunities
• Larger longer tenor housing loans under NCA
• More efficient collection platforms EDO
• Sustainable distribution network

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GovernanceBoard Members
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Thank You