(LiveMint)
International Finance Corp. (IFC), a member of the World Bank Group, will invest $25 million in Mahindra Rural Housing Finance Ltd. IFC said on Monday that the housing finance subsidiary of Mahindra Finance will utilize the funds to offer small home loans.
“There is high demand for affordable housing, particularly in rural and semi-urban areas. The supply is beginning to increase. IFC’s investment will send a positive signal to investors, increasing confidence and encouraging potential creditors to provide long-term debt to this sector,” said Arun Kumar Sharma, chief investment officer, IFC.
Sharma added that the investment will not only help in improving the living standards of the rural population, but will also help generate jobs in the housing construction industry. As on 30 June, Mahindra Rural Housing’s loan book was at ₹7,083 crore. About 85% of its portfolio is in the rural areas. For the April-June quarter, the company’s net profit stood at ₹31 crore.
