Record Details

The Informal Sector and Mortgage Financing in Ghana

Ghana Journal of Development Studies

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Field Value
 
Title The Informal Sector and Mortgage Financing in Ghana
 
Creator Decardi-Nelson, I
Asamoah, OR
Solomon-Ayeh, B
Nduro, KA
 
Subject Informal Sector, Mortgage Financing, Accessibility, and Eligibility Criteria
 
Description The increasing cost of building materials coupled with other challenges hinder the ability and desire of people to own houses. Over the years, accessibility to mortgage financing has become more skewed towards the formal sector to the neglect of the informal sector based on perceived and real challenges with informal sector financing. These notwithstanding, the need for innovative mortgages for the informal sector cannot be  overemphasised as more than 60% of employees within that sector cannot afford to own a decent accommodation. The Case Study Approach was employed to gather data from about 30% of construction artisans in  Ashanti Region. The study revealed that 6 out of the 8 basic eligibility  criteria were exclusion factors to the informal sector. These were the proof of address, proof of employment and income, ability to service the loans, the loan duration and the deposit. The paper recommends that there should be a financing mechanism that is flexible in terms of repayment. There should also be short term repetitive loans with some increment prior to first payment completion and flexible collateral that the borrower can afford. Finally, mortgage loans can be in the form of building materialsKEYWORDS: Informal Sector, Mortgage Financing, Accessibility, and Eligibility Criteria
 
Publisher Faculty of Integrated Development Studies, University for Development Studies
 
Contributor —
 
Date 2014-01-21
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.ajol.info/index.php/gjds/article/view/99941
10.4314/gjds.v9i2.8
 
Source Ghana Journal of Development Studies; Vol 9, No 2 (2012); 136-152
0855-6768
 
Language eng
 
Relation http://www.ajol.info/index.php/gjds/article/view/99941/89201
 
Rights Faculty of Integrated Development Studies, University for Development Studies, Ghana