Vastushodh Projects Private Limited, a real estate development company in India, is pairing up with The Micro Housing Finance Corporation (MHFC) to provide housing for the urban poor. MHFC has total funds of INR 22.5 million (USD 483,000) and total share capital INR 22 million (USD 473,000) as of March 2009 [1]. The organizations are setting up a micro township located in Yevat, a village in the Pune district of Maharashtra, located in southwestern India. The micro township will be called “Anandgram.” Vastushodh Projects Private Limited will provide the housing, and MHFC will provide financial assistance to buyers. MHFC will provide loans at a reducing annual interest rate of 12 to 14 percent [2].
The loans are targeted at the urban poor in this area who often do not have documents indicating proof of income and therefore cannot secure loans from traditional banking institutions [2]. According to Sachin Kulkarni, Managing Director of Vastushodh Projects, “With Anandgram we wanted to provide an effective yet affordable option to those who wish to live in better conditions, though slightly away from the city, rather than staying in the overcrowded and expensive localities in the city.”
By Julia Korn, Research Associate
About The Micro Housing Finance Corporation:
The Micro Housing Finance Corporation Limited (MHFC) is a start up venture that was incorporated on May 16, 2008. Its objective is to provide housing finance for lower income households (mostly in the informal sector) in urban India. Loans are given for a maximum period of 15 years and the prime lending rate (PLR) is currently 12 percent. MHFC has total funds of INR 22.5 million (USD 483,000) and total share capital of INR 22 million (USD 473,000) as of March 2009.
About The Vastushodh Projects Private Limited:
Vastushodh Projects Private Limited is a real estate development company that works in Pune and Daund City, India. There is no financial information available on the company.
Sources and Additional Resources:
[1] Micro Housing Finance Corporation. “Annual Report 2009.” http://mhfcindia.com/annualreport09.pdf
[2] Sakaal Times. “Housing for Poor: Loans Disbursed,” on June 3, 2010. http://www.sakaaltimes.com/SakaalTimesBeta/20100603/5130159322159149487….
MicroCapital Universe: The Vastushodh Projects Private Limited. https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Vas…
MicroCapital Universe: The Micro Housing Finance Corporation: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mic…
MicroCapital. “MICROCAPITAL.ORG STORY: Micro Housing Finance Corporation (MHFC) Recieves Rs 25 cr (USD 5.4 million) in Private Equity From the India Financial Inclusion Fund (IFIF) and the Michael & Susan Dell Foundation” by Christopher Maggio on October 19, 2009. https://www.microcapital.org/corporation-mhfc-recieves-rs-25-cr-usd-54-mi…
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