KfW, the German Development Bank, The Housing Development Finance Corporation (HDFC), an Indian mortgage lender, and SKS Microfinance, an Indian microfinance institution (MFI), have entered an agreement to provide loans for home improvement to, primarily, low-income women [1,2,3]. Under a “special agreement,” KfW will provide HDFC with the funds for the project [1]. For the first tranche of funding, KfW will provide HDFC with INR 10 Crore, the equivalent of over USD 2.1 million, to loan to SKS [1]. In turn, SKS will loan to borrowers that have had at least three years of “good credit history” with the MFI [1]. Further details on the arrangement between KfW and HDFC – such as whether the financing is a grant or loan – have not been made public. The companies have indicated that the loans will mainly be extended for the improvement of homes that also serve as a site of an “income generating activity” [1]. Loan sizes will range from INR 50,000, the equivalent of over USD 1,080, to INR 150,000, the equivalent of over USD 3,240 [1]. Borrowers will have three to five years to repay the loans [1]. The interest rate will be 21 percent fixed on a reducing basis [1]. Renu Sud Karnad, the managing director of HDFC, has indicated that there will be more funding for the program in the future [1].
By Christopher Maggio, Research Assistant
About:
Housing Development Finance Corporation (HDFC)
Description:
HDFC is a non-bank financial company based in Mumbai, India, with mortgage lending as is chief operation. It was incorporated in 1977. Besides its branches in India, HDFC also has branches in several Middle Eastern countries, Singapore, and the United Kingdom. HDFC also invests in microfinance institutions and has branches specifically used for microfinance.
HDFC does not report to the MIX Market, the microfinance information clearinghouse.
Organization’s Website:
http://www.hdfcindia.com/index.asp
Just the Facts:
-Country of Incorporation: India
-Year Founded: 1977
-Legal Status: Non-Bank Financial Institution (Mortgage Lender)
-Area of Operation: India, Middle East, Singapore, United Kingdom
-Currency: INR
-Executive Chairman: Mr. Deepak S. Parekh
Contact Information:
Head Office
Ramon House, 169, Backbay Reclamation,
H T Parekh Marg, Churchgate
MUMBAI – 400 020.
Working Days : Monday to Friday
Working Hours : 9:30 am to 5:15 pm
Contact :
For Housing Loans in Mumbai –
Tel: +91 (22) 66636000
For Housing Loans in Other Cities –
please Click here
For Deposits –
Tel: +91 (22) 66316060
For Others –
Tel: +91 (22) 66316000
Fax: +91 (22) 22048834
Additional Resources:
HDFC Consolidated Group Accounts with Auditor’s Report: http://www.hdfcindia.com/others/popup/about_us/annual2009/Consolidated%20Group%20Accounts%20with%20Auditors%20Report.pdf
Top News article entitled ‘HDFC and SKS Microfinance to enter deal for pilot project’: http://www.topnews.in/hdfc-and-sks-microfinance-enter-deal-pilot-project-2242184
Bibliography
[1] Top News article entitled ‘HDFC and SKS Microfinance to enter deal for pilot project’: http://www.topnews.in/hdfc-and-sks-microfinance-enter-deal-pilot-project-2242184
[2] HDFC: http://www.hdfcindia.com/
[3] SKS Microfinance: www.sksindia.com
[4] KFW: www.kfw.de/kfw/EN_Home/index.jsp
Source Article: Top News article entitled ‘HDFC and SKS Microfinance to enter deal for pilot project’: http://www.topnews.in/hdfc-and-sks-microfinance-enter-deal-pilot-project-2242184
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