“Save & Build” brings together low-income families in a community to form savings groups. The groups, usually ten to twelve families strong, save money and materials together. When a group has saved sufficient funds to build one house, Habitat’s national and international offices provide a matching loan to build two more, and constructionconstruction on the three houses commences.

Construction and saving continue until all group families are housed. A cycle normally takes about two years.

“Save & Build” applies micro-credit concepts to housing and encourages saving habits. Groups elect their own leaders, often women, manage and monitor members’ savings, decide which families are housed in which order, and provide “sweat equity” for construction.

Group families pay back both their own and the matching funds through mortgage loans lasting up to six years. Repayments provide a pool of funds to match the savings of other “Save & Build” groups.

The concept has proved highly successful and, in Sri Lanka, led to a sharp increase in the number of houses built by Habitat for lower-income families. The approach results in lower construction costs and allows more families to build housed more speedily. It is ideal for families, such as those reliant on seasonal work, who otherwise would not meet conventional housing Habitat criteria.

The approach has been adapted by groups who save to undertake renovatons and repairs, and in other circumstances.

“Save & Build” is being used in the Bangladesh, Cambodia , China , East Timor , Indonesia , Mongolia , Papua New Guinea, The Philippines and Vietnam, with other countries moving in this direction.