The door step for easy loans for affordable home

By Accommodation Times News Services

An HFC which avails micro-mortgage solutions for the urban poor

home loansLow-income home buyers who are seeking easy home loans for buying affordable homes, should approach Micro Housing Finance Corporation to acquire home loan and purchase their dream home. MHFC is focused on providing micro-mortgages to the urban poor, specifically those employed in the informal sector. Through this initiative, MHFC seeks to efficiently and sustainably enable access to housing finance services to the underserved and un-served segments of the urban population. MHFC received its license from its regulator, the National Housing Bank (NHB).

They seek to provide housing loans to lower-income group individuals living and working in the informal sector in urban India. Their customers are a mix of self employed micro-entrepreneurs (e.g. vegetable vendors, barbers) and un-organized sector salaried workers (e.g. drivers, housemaids), earning combined household incomes of between Rs. 8,000 and Rs. 25,000 per month.

These low-income earning individuals are not eligible for accessing loans from big banks and financial institutes due to lack of documentations and guaranties for recovering the loan. For such individuals MHFC is a blessing.  They develop a credit model that is capable of assessing their incomes and understanding the risks associated with this lending to this segment, MHFC is able to offer a high quality, competitive mortgage loan product to the unorganized sector.

The company has tie-ups with developers, who construct affordable housing in urban areas and want to provide high quality low-cost homes for low-income group people and they provide services only to the customers who buy homes from these developers. In this way the company provides two way assistances to the home seekers by providing easy loans with affordable dwellings. The y have even tie-ups with corporate companies and non-profit organizations, so as they can offer their services to their employees who fall in their customer’s eligibility criteria. MHFC, has also partnered with non-profit organizations, like NGOs, micro-finance institutions and self help groups, whose beneficiaries may be employed in the informal sector, and may be looking to buy a home of their own.

The product they offer to their customers is:

Loan Type

Micro-mortgages for new homes

Rate of Interest

12 to 14 % p.a. (reducing balance)

Loan Tenor

Up to 15 years

Loan Size

Up to 80 % of the cost of the flat

Documentation Identity proof

Residence proof, Bank statements

EMI (approx)

Rs. 1300 per lakh

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