Mahindra Rural HFC to disburse higher-ticket affordable loans

HFC's scale of operations, although small, has been improving over the past few years

After building a critical mass of small-ticket loans, Mahindra Rural Housing Finance (MRHFL) is tweaking business strategy to diversify into higher-ticket affordable segment — Rs 5 lakh-Rs 10 lakh.

The diversification in higher-ticket affordable segment is expected to reduce operating cost as well as reduce delinquencies. 

MRHFL, subsidiary of Mahindra and Mahindra Financial Services (Mahindra Finance), is raising short-term funds up to Rs 300 crore through commercial paper. India Ratings has assigned “A1+” rating for the CP offering. Mahindra Finance holds 87.5 per cent stake in the company and the balance is with the National Housing Bank.  

HFC’s scale of operations, although