Micro Housing Finance Corporation raises Rs 35 crore

Micro Housing Finance Corporation (MHFC) today said it has raised Rs 35 crore in fresh equity from existing investors and entertainment professional Ronnie Screwvala's fund, Unilazer Ventures.

 

The India Financial Inclusion Fund, the Michael and Susan Dell Foundation as well as existing investors participated in the funding, a company statement said.

 

Amit Banka, the managing director of Unilazer Ventures said it was drawn to the company because of its focus on the underserved segment, the passionate team, backing by sound investors and the ability to scale.

 

Details about valuation were not available as there was no mention of the stake to be held by the three investors.

 

With the infusion, the company's total capital has crossed Rs 77 crore, the statement said, adding that its debt also stands at the same level.

 

MHFC, which is focussed on the affordable housing segment, lends amounts upto Rs 5 lakh as loans, comprising not more than 85% of the property value, for a period not exceeding 15 years.

 

Its book stands at Rs 100 crore at present and the cumulative loan sanctions are at Rs 165 crore. The company targets to grow its sanctions to Rs 250 crore and its book size to Rs 150 crore by the fiscal end, the statement said.

 

With a presence in Mumbai, Pune, Ahmedabad, Surat, Jaipur, Nagpur, Indore, Bhopal and Kolkata, the company charges interest rates between 11% and 13%, the statement said.