Saturday, October 11, 2014

Poddar Developers - Atgaon - Navjeevan

Half page ad in the Hindustan Times (Mumbai edition) this morning re an approved project of MHFC - an affordable housing project by Poddar Developers  - "Navjeevan" at Atgaon (near Shahpur), under which 1 RK flats start at 7.8 lakhs and 1 BHK at 10.20 lakhs. 

For more information on the project, please see the company's website

For financing on this project, especially for informal sector customers who lack documentation to prove incomes, please email us on OR call our Loan Officer for the project - Amit Parkar - on 9167220734 for further information on terms and conditions of MHFC financing. 

Friday, October 10, 2014

New Launch - Mahindra Lifespaces "Happinest"- Boisar

Mahindra Lifespaces affordable housing project - "Happinest" has just launched - in Boisar. 

Spread across over 14 acres, the project offers 1RK, 1 and 2 BHK apartments in the range of 351 sqft to 695 sqft and would have a total of 800 units, and will be priced between Rs 9.1 lakh to Rs 17.5 lakh.

In the first phase, where construction will commence from next week and is scheduled to be completed in a year, the company will build nearly 359 units. 

For more information on the project, please see the company's website and this news article in the Economic Times.

We believe that this is a rare opportunity to own a quality home from a leading business group at a reasonable price within the Mumbai region and will be happy to support customers from our segment who are interested in this project.  

Thus, for financing up to 15 lakhs max on this project, especially for informal sector customers who lack documentation to prove incomes, please email us on OR call our Loan Officers for the project - Gulab Patil on 9167220732 and Amit Parkar on 9167220734 for further information on terms and conditions of MHFC financing. 

Thursday, October 9, 2014

Launch of Amrita Abashan II - Sonapur, Kolkatta

BGA Realtors, which is an existing builder partner of MHFC in Kolkatta has just launched the next phase of its Amrita Abashan project - Phase II - under which it is offering 240 flats (468 sq ft in size) priced between 8.1 lakhs and 8.65 lakhs respectively). Phase I had offered 768 flats.  

See link below for more details on the project
News article - BGA Amrita Abashan II launch

This is an approved project for MHFC - and we will finance buyers from our segment (subject to our terms and conditions). For more details, please see MHFC website or call our officer in Kolkatta - Subrata Biswas 9831433440 - or email him on  

Tuesday, September 2, 2014

DDA Housing Scheme 2014 opens - 25,034 flats on sale

Some announcements regarding new MHADA flats that will be available in 2014 - about 25,000 flats of which about 90% expected to be under EWS (pricing expected at between 7 and 11 lakhs).

Times of India
Economic Times
Business Today

"We are offering 25,034 flats in the 2014 scheme out of which 22,627 would be one-bed room apartments." said Balvinder Kumar, Vice-chairman, DDA. 

"The 'DDA Housing Scheme 2014' would be open to applicants from September 1 and the last date to receive the application is October 9. The draw of lots would preferably be taken out within 20 days of the close of the scheme," a senior DDA official said, adding, applicants can also apply online. 

DDA for the first time has also introduced a five-year lock-in period for ownership of the flats, to cut out the middleman and reduce the scope of speculative buying. Interestingly, a senior official said that from now on, DDA will adopt a practice of announcing a housing scheme only when the flats are in "ready to move-in" condition. "Learning from past experience when flats could not be handed over to allottees even months after draws were held, and we faced a lot of criticism, this time we will announce dates only after ensuring that the flats are ready to move in," said a senior official.

Note that like most developers linked to state bodies and authorities, the DDA will be an automatically approved developer for MHFC. Hence, for housing loans on DDA flats, but only to buyers who are from the informal sector (those lacking salary slips or income tax returns to prove incomes) or financially excluded (who cannot get loans from other housing finance companies easily) - please contact us on 22660427 / 0069 or email us on (website after allotment and when a loan is required.

Thursday, August 14, 2014

A short cut to financial inclusion

The Central Governments ambitious plan for financial inclusion under the Sampooorn Vittiya Samaveshan (SVS) targets the inclusion of 100 million unbanked households. Is this achievable with the present banking network and mindset? Or is there a short cut?

Consider this. In the 67 years of independence despite the best efforts of the Reserve Bank through regulation, persuasion and coercion, banks have managed to penetrate barely 40% of all households. Even where they have supposedly opened bank accounts a very significant number of the so called “no frills accounts”, have remained dormant, with customers finding no sense in operating these accounts due to lack of access, benefits and products.  It is time to realize and accept that banks have neither the will nor the ability or indeed the technology to achieve the financial inclusion mission. Policy makers need to understand and acknowledge that the current banking infrastructure may not be the most optimum way to reach the unbanked. The brick and mortar model that banks employ is slow and expensive.

Cell phone companies have managed to accomplish a 60% penetration of the total population in one third the time that the banks took, through a mindset that values customers, technology that is cheap to deploy and a product that customers want. It is important to note here that the documentation that is required to get a cell phone account is not a lot different from the set that is prescribed by the RBI for the opening of no frills accounts. They already have developed capacity to handle micro payments, money transfers, and have the data to create sensible credit products that can be delivered cheaply. Most importantly, customers are very used to going to the nearest recharge outlet to load up their phones with airtime.

The communication architecture, the network and technology that these companies have put in place can easily be adapted to achieve the Governments financial inclusion targets. What it only requires is a change in the mindset of policy makers that banks are not the exclusive or effective option for delivery of financial products. Why not consider using the more efficient and effective infrastructure that is already in place.
In practical terms many prepaid customers already consider their airtime as storage of value. A few more sophisticated customers already use it as a payment mechanism. The track records of cell phone usage and bill payment cycles can form an excellent proxy for structuring credit products. Banks starting afresh with new customers will legitimately have concerns about extending credit to newly acquired customers.
Policy makers should seriously consider allowing cell phone companies to either act as full fledged banks. in the alternative allow them to operate as front end with customers, with banks providing the back end processing and balance sheet support.

The Government and the RBI may have the greatest opportunity here to accomplish a policy goal by simply marrying the credit, capital and balance sheet strengths of banks with the marketing, distribution and technology capabilities of cell phone companies.