Micro Housing Finance Corporation National Housing Bank - Asia Pacific Union: Housing Finance January 30-31 2012 New Delhi.

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<ul><li>Slide 1</li></ul> <p>Micro Housing Finance Corporation National Housing Bank - Asia Pacific Union: Housing Finance January 30-31 2012 New Delhi Slide 2 Micro Housing Finance Corporation www.mhfcindia.com Indias Housing Shortage The Market LIG housing shortfall: 25 MM units LIG housing market size: Rs. 5-10 tr The Social Need Even if houses built, 90 % of workforce employed in informal sector Monthly earnings: Rs. 5,000 to 30,000 Excluded from mainstream housing finance MHFC seeks to bridge this gap 3 Worli Slum, Mumbai Slide 3 Micro Housing Finance Corporation www.mhfcindia.com Vision To help urban low income / financially excluded families own a home Philosophy Value for Money for Many Market Driven Solutions to address social issues; Inclusive Approaches to Lending; Sustainable and Scalable; Deploy best in class technologies Strategy Similar to other HFCs (product / processes / spreads) except (a) customer segment (b) project based About MHFC 4 Chandrakant Kharvi, Welder in Mumbai Slide 4 Micro Housing Finance Corporation www.mhfcindia.com Loan Size: Up to Rs. 10,00,000 Loan to Value Ratio: 80% Loan Term: up to 15 years Interest Rate: 12% to 14% (reducing) Fees: 1% sanction; NIL prepayment Security: mortgage of the house being financed Covenants: Bank Account (ECS) / Insurance Our Product 5 Kailash Naikwade, Tailor in Pune Slide 5 Micro Housing Finance Corporation www.mhfcindia.com Incorporated June 2008 / NHB license Feb 2009 / Commenced operations in June 2009 Equity Capital: Rs. 36.5 cr Total Amount Sanctioned: Rs. 52 cr Total Amount Disbursed: Rs. 30 cr Average Loan Size: Rs. 4 lakhs Average LTV: 65% Average Tenor: 12 years Past Dues (till date): 0 Number of Approved Projects: 50 Our Status 6 Bharat Sharma, Tailor in Indore Slide 6 Micro Housing Finance Corporation www.mhfcindia.com 1 Our Customers Average MHI: Rs. 8,000 to Rs. 20,000 Primary employed in the informal sector Breakup of Portfolio by Occupation Type I Average HH Size: 5 Households with multiple earning members Currently living in rental housing or illegal tenements Aspiration to own their own homes Salaried37% Self Employed34% Salaried &amp; Self Employed29% Slide 7 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 Priority Capital Debt (Tenor / Pricing / Start Up) ECBs not permitted NHB Refinance is post fact and based on outstandings 7 Our Challenges Ibrahim Shaikh, Garage Servicer in Mumbai Slide 8 Micro Housing Finance Corporation www.mhfcindia.com Advantages Knowledge of the target (informal sector) market Customer acquisition and outreach Credibility Collection mechanisms Roadblocks Long term lending Interest rate mis-match / adjustment Localized operations Lack of clarity on regulations 8 MFIs &amp; Housing Finance Jalinder Mhoprekar, Spice Vendor in Mumbai Slide 9 Micro Housing Finance Corporation www.mhfcindia.com 9 Conclusions HFCs Risk Management &amp; Back Office Capabilities MFIs Customer Acquisition &amp; Collection Mechanisms + Successful Micro Mortgage Finance Rahul Singh, Auto Servicer in Thane Slide 10 Micro Housing Finance Corporation www.mhfcindia.com 10 Contact Us Micro Housing Finance Corporation # 3 Victoria Building, 1 st Floor SA Brelvi Marg, Off Horniman Circle Fort, Mumbai 400001 Tel: (022) 2266 0130 or 0427 Email: contact@mhfcindia.comcontact@mhfcindia.com Website: www.mhfcindia.com </p>

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