MICROCAPITAL BRIEF: Au Financiers to Establish Affordable Housing Finance Company in India

Au Financiers, a non-banking financial company in Rajasthan, India, reportedly will establish Au Housing Finance Private Limited (AHFPL), an Indian housing company, to “cater to the un-served and under-served markets, predominantly in the low income state of Rajasthan.” Financial data on Au Financiers is not available. The International Finance Corporation (IFC), the private investment arm of the World Bank Group, will invest up to USD 5 million. The National Housing Bank (NHB), an Indian state-owned bank, and the government of Rajasthan will invest undisclosed sums in the project. The capital budget for the first 24 months is INR 1,350 million (USD 27.4 million) [1].

By Brendan Millan, Research Associate

About Au Housing Finance Private Limited (AHFPL): AHFPL is to be founded during 2012 by Au Financiers, with investments from the National Housing Bank (NHB), the government of Rajasthan and International Finance Corporation (IFC). The housing finance company will provide home loans to low-income people primarily in Rajasthan, India. The capital budget for the first 24 months is INR 1,350 million (USD 27.4 million).

About Au Financiers: Au Financiers is a non-banking financial company operating primarily in Rajasthan, India. It also has a presence in Maharashtra and Gujaratand and expects to expand its presence to other Indian states. Its services include microfinance, agri-finance, vehicle financing and personal loans to people living in rural and semi-urban areas. Au Financiers has reached approximately 100,000 customers. Au Financiers do not report to the US-based nonprofit Microfinance Information Exchange (MIX) and financial data on the lender is not otherwise available.

About the International Finance Corporation (IFC): A member of the World Bank Group, IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and total investment mobilization of USD 12.2 billion to 518 projects.

About World Bank Group: Formally established in 1945, World Bank Group consists of five international organizations that provide leveraged loans generally to low-income nations.

About the National Housing Bank (NHB): NHB was created in 1988 by an act of the Indian Parliament with the primary purpose of functioning as the principal agency to promote housing finance institutions (HFIs). NHB is wholly owned by the Reserve Bank of India (RBI), the country’s central bank. NHB has the mandate make loans and advances to scheduled banks and housing financial institutions (HFIs), formulate schemes for the mobilization of resources for housing and to issue directions to housing finance institutions in an effort to ensure their growth. NHB does not report to the US-based nonprofit Microfinance Information Exchange (MIX), and financial data on the organization is not otherwise available.

Sources and Resources:

[1] VC Circle: “IFC May Invest $5M in AU Housing Finance.”, http://www.vccircle.com/500/news/ifc-may-invest-5m-in-au-housing-finance

MicroCapital.org Article, April 6, 2010, “India Business Excellence Fund (IBEF), a Private Equity Fund, Ivest $44m of Equity in AU Financiers, a Non-banking Financial Company Located in India to Increase Lending to Small Entrepreners”, https://www.microcapital.org/microcapital-brief-india-business-excellence-fund-ibef-a-private-equity-fund-invests-44m-of-equity-in-au-financiers-a-non-banking-financial-company-located-in-india-to-increase-lending-to-sma/

MicroCapital.org Article, December 1, 2009, “International Finance Corporation (IFC) Set to Invest $7.5m in AU Financiers of India”, https://www.microcapital.org/microcapitalorg-brief-international-finance-corporation-ifc-set-to-invest-75m-in-au-financiers-of-india/

MicroCapital Universe Profile: Au Housing Finance Private Limited (AHFPL), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Housing+Finance+Private+Limited+%28AHFPL%29

MicroCapital Universe Profile: Au Financiers, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=AU+Financiers

MicroCapital Universe Profile: International Finance Corporation (IFC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

MicroCapital Universe Profile: World Bank Group, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The+World+Bank+Group

MicroCapital Universe Profile: National Housing Bank (NHB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=National+Housing+Bank+%28NHB%29

MicroCapital Universe Profile: Reserve Bank of India (RBI), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Reserve+Bank+of+India+%28RBI%29

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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