Micro Housing Finance Corporation (MHFC), an India-based housing company that provides home loans to lower income families, has partnered with Tata Housing, an Indian real estate developer, to launch the Shubh Griha housing project near Mumbai, India. Housing units are usually awarded to the general population through a lottery process, but Tata Housing will reserve 208 housing units out of 1200 total units for families that require financial assistance.
MHFC has partnered with Tata Housing previously on similar projects involving low-cost homes, including one in Boisar, India. In that project, demand exceeded the supply of housing encouraging the two groups to consider more housing developments geared towards lower income families.
Families generally served by MHFC are those that do not have access to typical financing, or, more commonly, ones that do not have documentation to prove their income. Brotin Banerjee, of Tata Housing, hopes that the partnership will “enable easy housing finance to the consumers in the informal sector [1].”
By John Howard-Smith, Research Associate
About Micro Housing Finance Corporation (MHFC): The Micro Housing Finance Corporation Limited (MHFC), founded in May 2008, is an India-based housing finance company. Its objective is to provide housing finance for lower income households (mostly to those headed by workers in the informal sector) in urban India. Loans are given for a maximum period of 15 years with a prime lending rate (PLR) of 12 percent as of 2009. As of November 2010, MHFC has crossed INR 100 million (USD 2.25 million) in loan sanctions. MHFC has total assets of INR 123 million (USD 2.77 million) and total share capital of INR 117 million (USD 2.63 million) as of March 2010.
[1] PR4INDIA: “Micro Housing Finance Corporation (MHFC) Crosses Rs 10 Cr In Loan Sanctions, Ties Up With Tata Housing On Mumbai Project”, http://www.pr4india.com/banking_financial_services/6070.htm
MicroCapital’s Microfinance Universe profile: Micro Housing Finance Corporation (MHFC): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Micro+Housing+Finance+Corporation
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