At a time when the microfinance industry has come under scanner after a number of suicide cases reported in Andhra Pradesh, Hyderabad-based Basix Group has launched a model that provides safe housing solutions, backed by micro home loans and livelihood schemes. The microfinance firm plans its own micro-finance housing arm by 2011.
Aimed at the unorganised sector and the urban and semi-urban poor, a pilot project has been launched at Mongolpuri and Sultanpuri clusters in North-West Delhi. Basix, apart from providing home loan, will also act as an interface between a household and contactors and masons on building safe houses.
“The interest rate against loan for unsecured property is 24% and 18% for secured property. We charge an additional 3% for providing complete consultancy service.
Once we have the housing finance company in place, we can offer cheaper loans,” said Mohd Riaz, North India head, Basix.
The group aims to build 50 houses by December-end and 10,000 houses across the country in the next two years. “Getting a bank loan for the workers in the unorganised sector is a tough job and considering this we launched this initiative.”
The company has also linked its home loan scheme with a livelihood scheme, so that loans are given for buying equipment etc as per ones business needs.