Micro Housing Finance Corporation Limited

Micro Housing Finance Corporation Limited (MHFC), now known as Svatantra Micro Housing Finance Corporation Limited (SMHFC), operates as a housing finance company in India, specifically targeting the affordable housing segment. The firm was established in May 2008 by Madhusudan Menon and Rajnish Dhall, with lending operations commencing in 2009. A significant milestone occurred in September 2018 when Svatantra Holdings Private Limited, led by Ananya Birla, acquired the company, integrating it into the Svatantra Group and, by extension, the Aditya Birla Group. This acquisition was driven by a shared vision to address the housing needs of economically weaker sections of society.

The company's business model is centered on providing housing finance to low-income households, particularly those in the informal sector who lack the formal documentation required by traditional banking institutions. SMHFC's target clients are from the Economically Weaker Section (EWS) and Lower-Income Group (LIG). Revenue is generated through interest on loans. The company's product portfolio is diverse, including loans for home purchase, self-construction, home extension, renovation, and loans against property. A key aspect of their strategy is a branchless model for sourcing, supported by technology and a rigorous risk assessment framework to ensure the security of both clients and projects. The firm collaborates with affordable home developers, microfinance organizations, and housing finance associations to reach its customer base.

Since its inception, the company has experienced significant growth. After achieving its first annual profit in 2014, it expanded its operations across several Indian states. By March 2015, cumulative loan sanctions reached ₹303 Cr. Following the 2018 acquisition, the company continued its expansion, starting operations in Tamil Nadu in 2020 and crossing ₹1000 Cr in loan disbursements by 2021. As of September 2023, SMHFC operated in nine states and one union territory, with a gross assets under management (AUM) of ₹1,805 crore and over 42,000 clients. The company has received multiple capital infusions from its parent company to support this growth. SMHFC has also been recognized for its social impact and business model, receiving a top rating from impact rating agency GIIRS and a nomination for a 'Boldness in Business' award from the Financial Times.

Keywords: affordable housing finance, micro-mortgage, low-income housing loans, informal sector lending, housing finance India, EWS financing, LIG home loans, Svatantra, Ananya Birla, rural housing finance, urban poor housing, home construction loans, loan against property, financial inclusion, social impact investing, housing microfinance, property loans India, home renovation loans, branchless banking, real estate finance