State housing finance institutions have long since perceived the problem of too
high loan amounts and are trying to cope with it by emaciated project approaches.
Particular examples of this are the site-and-service and the core house projects.
Since the costs of building pIots and development in urban areas, however, are
usually, in fact, the decisive costing factor,’ 9 even these measures, though right in
principle, often fail to reach the real poor. In addition, there is often no possibility
of obtaining follow-up loans for building the house itself. Indeed, the
demand for such loans is also limited, since the repayment obligations arising
from the first project are already exhausting for a long time the financial resources
of most poor families.