1. Micro Housing Finance Corporation National Housing Bank - Asia Pacific Union: Housing Finance January 30-31 2012 New Delhi

2. Micro Housing Finance Corporation www.mhfcindia.com Indias Housing Shortage The Market LIG housing shortfall: 25 MM units LIG housing market size: Rs. 5-10 tr The Social Need Even if houses built, 90 % of workforce employed in informal sector Monthly earnings: Rs. 5,000 to 30,000 Excluded from mainstream housing finance MHFC seeks to bridge this gap 3 Worli Slum, Mumbai

3. Micro Housing Finance Corporation www.mhfcindia.com Vision To help urban low income / financially excluded families own a home Philosophy Value for Money for Many Market Driven Solutions to address social issues; Inclusive Approaches to Lending; Sustainable and Scalable; Deploy best in class technologies Strategy Similar to other HFCs (product / processes / spreads) except (a) customer segment (b) project based About MHFC 4 Chandrakant Kharvi, Welder in Mumbai

4. Micro Housing Finance Corporation www.mhfcindia.com Loan Size: Up to Rs. 10,00,000 Loan to Value Ratio: 80% Loan Term: up to 15 years Interest Rate: 12% to 14% (reducing) Fees: 1% sanction; NIL prepayment Security: mortgage of the house being financed Covenants: Bank Account (ECS) / Insurance Our Product 5 Kailash Naikwade, Tailor in Pune

5. Micro Housing Finance Corporation www.mhfcindia.com Incorporated June 2008 / NHB license Feb 2009 / Commenced operations in June 2009 Equity Capital: Rs. 36.5 cr Total Amount Sanctioned: Rs. 52 cr Total Amount Disbursed: Rs. 30 cr Average Loan Size: Rs. 4 lakhs Average LTV: 65% Average Tenor: 12 years Past Dues (till date): 0 Number of Approved Projects: 50 Our Status 6 Bharat Sharma, Tailor in Indore

6. Micro Housing Finance Corporation www.mhfcindia.com 1 Our Customers Average MHI: Rs. 8,000 to Rs. 20,000 Primary employed in the informal sector Breakup of Portfolio by Occupation Type I Average HH Size: 5 Households with multiple earning members Currently living in rental housing or illegal tenements Aspiration to own their own homes Salaried37% Self Employed34% Salaried & Self Employed29%

7. Micro Housing Finance Corporation www.mhfcindia.com Customer Awareness (projects / MHFC) Credit (untested / self exclusion) Time to decide (so outbooked) Pricing going up (out of reach) Construction (Builder) Delivery risk Changing Segments Low Priority Capital Debt (Tenor / Pricing / Start Up) ECBs not permitted NHB Refinance is post fact and based on outstandings 7 Our Challenges Ibrahim Shaikh, Garage Servicer in Mumbai

8. Micro Housing Finance Corporation www.mhfcindia.com Advantages Knowledge of the target (informal sector) market Customer acquisition and outreach Credibility Collection mechanisms Roadblocks Long term lending Interest rate mis-match / adjustment Localized operations Lack of clarity on regulations 8 MFIs & Housing Finance Jalinder Mhoprekar, Spice Vendor in Mumbai

9. Micro Housing Finance Corporation www.mhfcindia.com 9 Conclusions HFCs Risk Management & Back Office Capabilities MFIs Customer Acquisition & Collection Mechanisms + Successful Micro Mortgage Finance Rahul Singh, Auto Servicer in Thane

10. Micro Housing Finance Corporation www.mhfcindia.com 10 Contact Us Micro Housing Finance Corporation # 3 Victoria Building, 1 st Floor SA Brelvi Marg, Off Horniman Circle Fort, Mumbai 400001 Tel: (022) 2266 0130 or 0427 Email: contact@mhfcindia.comcontact@mhfcindia.com Website: www.mhfcindia.com