"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. "Home ownership helps improve living standards and the housing construction industry is a significant employment generator. Both are critical to IFC's mission," he added.
MRHFL Managing Director Anuj Mehra said, "MRHFL has extended loans to more than 700,000 households in rural India. This investment will be a further boost to our mission to expand and reach out to under-served customers in rural markets, thus transforming rural lives."
Last month, IFC committed Rs 6.4 billion ($100 million) in Mahindra & Mahindra Financial Services Ltd (MMFSL) to increase loans to farmers for buying tractors, commercial vehicles, and other equipment for modern farming. Both MRHFL and MMFSL are part of the Mahindra & Mahindra Group, whose relationship with IFC goes back to 1963.