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Micro Housing Finance Corporation. National Housing Bank - Asia Pacific Union: Housing Finance January 30-31 2012 New Delhi. Indias Housing Shortage. The Market LIG housing shortfall: 25 MM units LIG housing market size: Rs. 5-10 tr The Social Need - PowerPoint PPT Presentation

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  • Micro Housing Finance CorporationNational Housing Bank - Asia Pacific Union: Housing Finance

    January 30-31 2012New Delhi

    Micro Housing Finance Corporation www.mhfcindia.com

    Indias Housing ShortageThe MarketLIG housing shortfall: 25 MM units LIG housing market size: Rs. 5-10 tr

    The Social NeedEven if houses built, 90 % of workforce employed in informal sector Monthly earnings: Rs. 5,000 to 30,000Excluded from mainstream housing finance

    MHFC seeks to bridge this gap

    3Worli Slum, Mumbai

    Micro Housing Finance Corporation www.mhfcindia.com

    About MHFC4Chandrakant Kharvi, Welder in Mumbai

    Micro Housing Finance Corporation www.mhfcindia.com

    Loan Size: Up to Rs. 10,00,000Loan to Value Ratio: 80%Loan Term: up to 15 yearsInterest Rate: 12% to 14% (reducing)Fees: 1% sanction; NIL prepaymentSecurity: mortgage of the house being financedCovenants: Bank Account (ECS) / InsuranceOur Product5Kailash Naikwade, Tailor in Pune

    Micro Housing Finance Corporation www.mhfcindia.com

    Incorporated June 2008 / NHB license Feb 2009 / Commenced operations in June 2009Equity Capital: Rs. 36.5 crTotal Amount Sanctioned: Rs. 52 crTotal Amount Disbursed: Rs. 30 crAverage Loan Size: Rs. 4 lakhsAverage LTV: 65%Average Tenor: 12 years Past Dues (till date): 0Number of Approved Projects: 50Our Status6Bharat Sharma, Tailor in Indore

    Micro Housing Finance Corporation www.mhfcindia.com

    1Our CustomersAverage MHI: Rs. 8,000 to Rs. 20,000Primary employed in the informal sectorBreakup of Portfolio by Occupation Type IAverage HH Size: 5Households with multiple earning membersCurrently living in rental housing or illegal tenementsAspiration to own their own homes

    Salaried37%Self Employed34%Salaried & Self Employed29%

    Micro Housing Finance Corporation www.mhfcindia.com

    Customer Awareness (projects / MHFC)Credit (untested / self exclusion)Time to decide (so outbooked)Pricing going up (out of reach)Construction (Builder)Delivery risk Changing Segments Low PriorityCapital Debt (Tenor / Pricing / Start Up)ECBs not permittedNHB Refinance is post fact and based on outstandings7Our ChallengesIbrahim Shaikh, Garage Servicer in Mumbai

    Micro Housing Finance Corporation www.mhfcindia.com

    AdvantagesKnowledge of the target (informal sector) marketCustomer acquisition and outreachCredibilityCollection mechanisms

    RoadblocksLong term lendingInterest rate mis-match / adjustmentLocalized operationsLack of clarity on regulations

    8MFIs & Housing FinanceJalinder Mhoprekar, Spice Vendor in Mumbai

    Micro Housing Finance Corporation www.mhfcindia.com

    9ConclusionsHFCs

    Risk Management & Back Office Capabilities MFIs

    Customer Acquisition & Collection Mechanisms +Successful Micro Mortgage FinanceRahul Singh, Auto Servicer in Thane

    Micro Housing Finance Corporation www.mhfcindia.com

    10Contact UsMicro Housing Finance Corporation# 3 Victoria Building, 1st FloorSA Brelvi Marg, Off Horniman CircleFort, Mumbai 400001

    Tel: (022) 2266 0130 or 0427Email: contact@mhfcindia.comWebsite: www.mhfcindia.com