1. Micro Housing Finance Corporation Micro Mortgages for Low Cost Housing 32 nd Meeting of the National Housing Bank New Delhi | August 30 2011

2. CONTENTS The MHFC Story About MHFC Our Product Our Customers Our Projects Our Locations Current Status Partnerships Technology Challenges Recommendations Contact Us Worli Village Slums, Worli, Mumbai

3. The Urban Context 30% of population is urban, living on less than 2% of the country’s land In Maharashtra, 60% of the total population is now urban; in Mumbai, 54% of the city’s population lives in slums in less than 4% of its land India’s urban population (285 million) has increased five fold over the past 50 years, and is projected to keep increasing to reach 50% of the total population in the next 30 years THE MHFC STORY Formal & Informal Low Income Housing, Prabhadevi, Mumbai

4. The Market LIG housing shortfall: 25 mn units LIG housing market size: Rs. 5-10 tr Mortgage finance market size: Rs. 4-8 tr The Social Need 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 THE MHFC STORY BDD Chawl, Worli Naka, Mumbai

5. Vision To provide micro mortgage solutions for the urban poor Philosophy Market Driven Solutions to address social issues Inclusive Approaches to Lending Sustainable and Scalable Deploy best in class technologies ABOUT MHFC MHFC customer Kailash Naikwade in Sadashiv Peth, Pune

6. 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) Security: mortgage of the house being financed Covenants: bank account / ECS OUR PRODUCT Work in progress at Om Shanti Nagar II in Lamba, Ahmedabad

7. Average MHI: Rs. 8,000 to 20,000 Primarily employed in the informal sector Average HH Size: 5 Households with multiple earning members Currently living in rental housing or illegal tenements Aspiration to own their own homes OUR CUSTOMERS MHFC customer Badri Thakur at his salon in Fanaswadi, Mumbai

8. MHFC currently has an active presence in over 35 projects across Urban India: Mumbai Pune Nagpur Surat Ahmedabad Indore Kolkata OUR LOCATIONS

9. CURRENT STATUS NHB COR received in February 2009 Capital received: Rs. 36.5 crores Commenced operations in June 2009 Total Applications Received: 1231 Total Loans Sanctioned: 1020 Total Amount Sanctioned: Rs. 41.15 crores Average Loan Size: Rs. 4 lakhs Number of Approved Projects: 35 NB: All numbers updated as of August 26, 2011 Dream City apartments and row houses in Indore

10. MHFC seeks to use mobile / telecom technology and data to: Enhance Credit: customer spending on mobile phones as a proxy for earnings Act as a Platform for:  Product delivery  EMI collection  Communication with customers Reduce cost per transaction / customer interaction TECHNOLOGY MHFC customer Bharat Sharma in Meghdoot Nagar, Indore

11. PARTNERSHIPS MHFC customer Jalinder Mhoprekar in Crawford Market, Mumbai MHFC seeks to partner with: Banks Front-end product delivery Customer information sharing Housing Finance Companies Two-way customer referrals NGOs, MFIs & Employers Outreach: customers and employees Information dissemination and marketing

12. CHALLENGES: Customer Outreach Awareness Lack of awareness on affordable housing options and formal housing finance Self Exclusion Ineligibility  self exclusion from seeking housing options Creditworthiness Establishing credit credentials Cost Escalation Appreciation of flat prices faster than increases in customer incomes MHFC customer Rahul Singh in Boisar, Thane

13. RECOMMENDATIONS Vaishnavi Sai Complex in Virar (E), Mumbai Develop Long Term Debt Markets Reduce asset liability mismatches Improve access to off-shore markets Priority Sector Definition Special status for loans <Rs. 10 lakhs Lower Capital Requirements For small ticket size loans Targeted Refinance Lines For loans < Rs. 10 lakhs External Capital Borrowings

14. RECOMMENDATIONS MHFC customer Chandrakant Kharvi in Bhayendar, Mumbai Automatic SARFAESI eligibility Eligibility for SARFAESI upon receipt of COR from the NHB Facilitating Downpayments Customers have reasonable current incomes but low savings. Allow HFCs to accept EMIs in advance to build up down payments. Educational Loans Provision of education / vocational lending for customers’ children to enable future repayment capacity

15. 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 CONTACT US MHFC customer Laxman Thorat in Crawford Market, Mumbai