MICROCAPITAL BRIEF: Micro Housing Finance Corporation (MHFC) Raises $5.6m in Equity from Michael and Susan Dell Foundation, India Financial Inclusion Fund, Unilazer Ventures

The Micro Housing Finance Corporation (MHFC), an India-based finance company that provides housing loans of up to INR 500,000 (USD 8,040), recently announced that it has raised INR 35 million (USD 5.62 million) in equity. Existing investors including the Michael and Susan Dell Foundation, a US-based nonprofit that supports children’s issues and community initiatives, and the India Financial Inclusion Fund (IFIF), a USD 90 million fund that invests in small to medium microfinance institutions (MFIs) contributed to the funding, as did new investor Unilazer Ventures, a Mumbai-based company that supports start-up businesses. Further information on the transactions has not been released.

MHFC provides loans at rates of 11 to 13 percent with terms of up to 15 years. With the new investments, MHFC holds total capital of INR 770,000,000 (USD 12,400,000) as of September 2013.

By Megan McGowan, Research Associate

About Micro Housing Finance Corporation (MHFC): Founded in May 2008, MHFC is an India-based housing finance company. Its objective is to provide housing finance in urban India for lower income households, mostly those headed by workers in the informal sector. As of March 2013, MHFC has disbursed 2,053 loans worth a total of INR 778 million (USD 12.4 million), which are given for a maximum period of 15 years with a prime-lending rate (PLR) of 12 percent. As of September 2013, INR held total assets of 770 million (USD 12.4 million) and total share capital of INR 230 million (USD 3.67 million).

Sources and Additional Resources:

[1] The Economic Times, “Micro Housing Finance Corp Raises INR 35 Crore from Investors, Unilazer Ventures,” September 16, 2013, http://economictimes.indiatimes.com/topic/Amit-Banka

MicroCapital.org Brief, March 22, 2011, “MICROCAPITAL BRIEF: Micro Housing Finance Corporation (MHFC) of India Achieves $5.5m in Loan Sanctions,” https://www.microcapital.org/microcapital-brief-micro-housing-finance-corporation-mhfc-of-india-achieves-5-5m-in-loan-sanctions/

MicroCapital.org Brief, November 5, 2010, “Micro Housing Finance Corporation (MHFC), Tata Housing Partner to Launch Shubh Griha Housing Project for Lower Income Families Including Microfinance Clients Near Mumbai, India,” https://www.microcapital.org/microcapital-brief-micro-housing-finance-commission-mhfc-tata-housing-partner-to-launch-shubh-griha-housing-project-for-lower-income-families-including-microfinance-clients-near-mumbai-india/

MicroCapital.org Brief, September 20, 2010, “Micro Housing Finance Corporation (MHFC) of India Achieves $2.16m in Loan Sanctions,” https://www.microcapital.org/microcapital-brief-micro-housing-finance-corporation-mhfc-of-india-achieves-2-16m-in-loan-sanctions/

MicroCapital Universe Profile: Micro Housing Finance Corporation (MHFC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Micro+Housing+Finance+Corporation

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