Thursday, April 21, 2016

Customer Story: Incense stick maker, Gujarat

This applicant makes incense sticks directly from her home - a lot of people in the neighbourhood earn side income from this occupation.
Her husband works at a dye making factory, where he earns a salary of Rs. 14,000 per month. Together, their total income is roughly Rs. 16,000-17,000 - which allows them to pay rent and cover household expenses.
We recently sanctioned a loan of Rs. 2.5 lakh to help them buy a flat in an affordable housing project in Ahmedabad.

Monday, April 11, 2016

Customer Story: machine operator / maid, Gujarat

Majority of our applicants stay in rented accommodations like the one pictured below. Crumbling walls and cramped spaces usually characterize these houses - the need for a new flat in an affordable housing project is apparent.
This applicant works at a textile mill in Surat, Gujarat where he earns a daily wage of Rs. 340 per day. His wife works as a maid at a local diamond processing workshop & various apartment complexes - she earns a total income of Rs. 8,000 per month. Along with their two children, they plan on moving into an MHFC approved affordable housing project in Surat; the project has several amenities (steady water supply, open spaces etc) that would be a marked improvement over their current housing situation.

Wednesday, April 6, 2016

Customer Story: salon owner, Chhattisgarh

This applicant has been running a salon in Raipur, Chhattisgarh for the past 10 years. "Shri Laxmi Beauty Salon" is located on the main road right near a bus stand, so the salon has a strong customer footfall.
He offers a variety of services, but the most popular ones are haircuts (Rs. 30), shaves (Rs. 20) and massages (Rs. 80). He earns a daily gross income of Rs. 1500-2000 out of which he pays Rs. 150 to each of his 5 employees and incurs Rs. 300 on material expenses (powder, cream, face wash, blades etc).
After paying rent and electricity, his net monthly income amounts to Rs. 11,000 - a conservative estimate considering his daily income doubles on Sundays and other holidays.
As a housing finance company, cash flow analysis of the applicant's business is one of the many variables we take into consideration when providing housing loans to the informal sector. This applicant will be using his loan to finally move out of his current property - where he lives in a large joint-family. The lack of space prompted the desire to move, the customer's stable income made it possible.

Tuesday, March 29, 2016

Customer Story: shoe stall owner, Gujarat

This applicant operates a small shoe stall in one of the main markets of Udhana, a sub-city of Surat, Gujarat. She has been working here - along with her husband - for the past 25 years.
They currently stay in a rented house (paying a monthly rent of Rs. 2,500) with their two children. Recently they booked a 2 BHK flat in an affordable housing project & applied to MHFC for a Rs. 8.5 lakh home loan.
We visited their stall in Surat to gain a better understanding of their business. After inquiring about their daily sale, prices of different types of products, margins, footfall and other variables, we were confident that their monthly income of Rs. 24,000 was enough to cover our EMI while leaving more than enough for their household, education & rental expenses.

Monday, March 21, 2016

Customer Story: loom operator / rickshaw driver, Gujarat

Enterprising applicant - for the past 6 years he has been working as a loom operator at a local factory in Surat, where he earns a salary of Rs. 16,000 per month.
After work, he drives an auto rickshaw around the city, earning an additional Rs. 400 per day. His wife also works, earning Rs. 3000-4000 per month as a daily wage laborer for stitching decorative stones on saris.
This applicant has stayed in rented accommodation all his life - currently he pays Rs. 1,800 per month as rent. After taking a loan from MHFC, this applicant will replace his monthly rent with an EMI of Rs. 2,800. Although the extra Rs. 1,000 per month will be used towards home ownership.