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

Transcript
Page 1: Micro Housing Finance Corporation National Housing Bank - Asia Pacific Union: Housing Finance January 30-31 2012 New Delhi.

Micro Housing Finance Corporation

National Housing Bank - Asia Pacific Union: Housing Finance

January 30-31 2012New Delhi

Page 2: Micro Housing Finance Corporation National Housing Bank - Asia Pacific Union: Housing Finance January 30-31 2012 New Delhi.

Micro Housing Finance Corporationwww.mhfcindia.com

India’s Housing ShortageThe 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

Page 3: Micro Housing Finance Corporation National Housing Bank - Asia Pacific Union: Housing Finance January 30-31 2012 New Delhi.

Micro Housing Finance Corporationwww.mhfcindia.com

About MHFC

4

Chandrakant Kharvi, Welder in Mumbai

Page 4: Micro Housing Finance Corporation National Housing Bank - Asia Pacific Union: Housing Finance January 30-31 2012 New Delhi.

Micro Housing Finance Corporationwww.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

Page 5: Micro Housing Finance Corporation National Housing Bank - Asia Pacific Union: Housing Finance January 30-31 2012 New Delhi.

Micro Housing Finance Corporationwww.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

Page 6: Micro Housing Finance Corporation National Housing Bank - Asia Pacific Union: Housing Finance January 30-31 2012 New Delhi.

Micro Housing Finance Corporationwww.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

Salaried 37%

Self Employed 34%

Salaried & Self Employed 29%

Page 7: Micro Housing Finance Corporation National Housing Bank - Asia Pacific Union: Housing Finance January 30-31 2012 New Delhi.

Micro Housing Finance Corporationwww.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

Page 8: Micro Housing Finance Corporation National Housing Bank - Asia Pacific Union: Housing Finance January 30-31 2012 New Delhi.

Micro Housing Finance Corporationwww.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 & Housing Finance

Jalinder Mhoprekar, Spice Vendor in Mumbai

Page 9: Micro Housing Finance Corporation National Housing Bank - Asia Pacific Union: Housing Finance January 30-31 2012 New Delhi.

Micro Housing Finance Corporationwww.mhfcindia.com 9

Conclusions

HFCsRisk Management

& Back Office Capabilities

MFIsCustomer Acquisition

& Collection Mechanisms

+

Successful Micro Mortgage Finance

Rahul Singh, Auto Servicer in Thane

Page 10: Micro Housing Finance Corporation National Housing Bank - Asia Pacific Union: Housing Finance January 30-31 2012 New Delhi.

Micro Housing Finance Corporationwww.mhfcindia.com 10

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

Tel: (022) 2266 0130 or 0427Email: [email protected]: www.mhfcindia.com