IFC to invest Rs 1.6 bn in MRHFL, proceeds to benefit borrowers in villages

IFC has also committed Rs 6.4 bn in Mahindra & Mahindra Financial Services Ltd to increase loans to farmers

International Finance Corporation (IFC), a member of the World Bank Group, has announced an investment of Rs 1.6 billion ($25 million) in Mahindra Rural Housing Finance Ltd (MRHFL). The proceeds will be used to give loans to low-income borrowers in villages.  

MRHFL has 85 per cent of its portfolio in rural areas, with an average loan size of only $1,200. It has demonstrated its ability to serve economically weak segments in a commercially sustainable manner. Its customers include farmers, micro-entrepreneurs, and salaried workers in the unorganised sector, who often do not have documentary evidence of income and lack a proven