IFC, an affiliate of World Bank, has invested ₹1.6 billion ($25 million) in Mahindra Rural Housing Finance Ltd.
MRHFL will use the proceeds to give loans to low-income borrowers in villages, said a company release.
MRHFL has 85% of its portfolio in the rural areas with an average loan size of only $1,200.
“It demonstrates the comany’s ability to serve economically weak segments in a commercially sustainable way,’’ the release added. Its customers include farmers, micro-entrepreneurs and salaried workers in the un-organized sector, who often do not have documentary evidence of income and lack a proven credit history.
