36905-014: INDIA MORTGAGE GUARANTEE COMPANY (IMGC)

Project Data Sheet (PDS): Overview


Description

The Project will establish a mortgage credit guarantee company to protect primary mortgage lenders such as banks and housing finance companies (HFCs) in case of borrower default. By having IMGC insure the lender against borrower default, and with the risk of default effectively shifted to another entity, HFCs and banks will be able to (i) improve the loan provisioning requirements for lenders, thereby permitting a greater volume of mortgage lending in the Indian market, (ii) lower the down payment requirements from the current 15% to as low as 5%, (iii) enable HFCs and banks to eliminate certain restrictive criteria currently imposed by each of them on potential mortgages, thereby broadening the class of person to whom mortgage facilities will be offered, (iv) extend the tenor of loans to up to 25 years or more instead of the current average of 15 years, and (v) improve the return on capital to the mortgage lender. Read More

Country India
Borrower/Equity Investment Name INDIA MORTGAGE GUARANTEE COMPANY
Project Number 36905-014
Project Type or Modality of Assistance PS
Financing Private sector (Nonsovereign)
Status Approved
Approval Number 7180
Approval Date 26 Nov 2002
Geographical Location New Delhi
Sector / Subsector Classification Finance
/ Housing Finance
Thematic Classification Economic growth
Governance
Private sector development
Safeguard Categories Environment: C

 

 

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Project Data Sheets (PDS)

Responsible ADB Officer
Peter Marro
Email contact

Responsible ADB Department
Private Sector Operations Department

Responsible ADB Divisions
Private Sector Investment Funds & Special Initiatives Div

PDS Creation Date
17 Aug 2006

Last PDS Update
31 Oct 2006

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