1.
1
Mahindra Housing
Finance – GTM
Strategy

2.
Process
2

3.
3
AS IS STATE
• Mahindra Housing Finance is present in 13 states in India and cover almost 80000+ villages
• They have touched lives of 40 Lakh people through their lending operations
• They have served ~9.5 lakh customers
• The ultimate vision of the company is to build a home for every Indian
• They deal in two segments currently:
• Ticket size of 1-6 Lacs in low income group
• Affordable housing for middle income group with ticket size of 8-50 lacs
• The current interest rate ranges from 14-18% and cost of funds ranges from 8-10%

4.
Go-To-Market
4

5.
• Optimizing finance cost and operational cost
• Awareness on the buyer side and credibility of MHF as a housing finance provider
• Collection frequencies and high NPAs
5
STEPS TO GTM STRATEGY
Problem Identification
• The target customers for the products are
• Agriculturalists
• Rural Business Owners
• Dairy Farmers
• These customers aspire to purchase/construct residential property in rural and semi-urban areas
Target Audience Identification
• Indian Housing Finance Industry is worth $240 Billion
• Mortgage penetration in India is as low as 11% falling to 5% in rural and semi-urban areas
• The major competitors in this sector are the local money lenders and local and gramin banks
• The prominent players in the market are Muthoot Housing Finance Company Limited, Aavas Financiers Limited, HDFC Housing
Finance Etc.
Competition and Demand

6.
• Product mix can be identified basis the following parameters:
• Analysing the different type of loan offerings possible like Housing, cattle loan, crop loans , top-up loans etc
• Evaluate the Current Product Offering and their key matrix throughout the Product Life Cycle as in Volumes/Disbursements, Sectors/Areas
Coverage, Collection Efficiencies & NPAs, Disbursement timeline, etc.
• Taking feedback from customers and identifying improvement areas
• Understanding the competition and their edge over our product offerings
6
STEPS TO GTM STRATEGY
Product Mix
Product Pricing
Product Segment Product Offering Risk Profile* Interest
Low Income Group Loans – 1-6 lac Ticket size
Loan for purchasing piece of land High
Cost of funds + Operational cost = X% +
Risk premium
Loan for constructing a house Medium X%+ Risk premium
Loan for purchasing a house Low X%+ Risk premium
Loan for extension of property Medium X%+ Risk premium
Loans for improvement of house Low X%+ Risk premium
Loans against property High X%+ Risk premium
Affordable Housing – 8-50 Lacs Ticket Size
Loan for purchasing piece of land High X%+ Risk premium
Loan for constructing a house Medium X%+ Risk premium
Loan for purchasing a house Low X%+ Risk premium
Loan for extension of property Medium X%+ Risk premium
Loans for improvement of house Low X%+ Risk premium
Loans against property High X%+ Risk premium

7.
• Launching new product in an existing market – Currently MHF is present in Southern and Central India- Phase 1 would be
launching new products in Southern and Central India
• Testing existing product in a new market – Phase 2 would be tapping into markets like North and East India
• Buyer journey can be tapped into three levels:
• Top of funnel – where awareness needs to be created about the product
• Middle of funnel – Convincing customer of the product being better than competition and free of all hidden charges
• Bottom of funnel – Gaining the customer’s trust and provide them with a seamless journey
7
STEPS TO GTM STRATEGY
Buyer’s journey
• The most common marketing channel in a product like rural housing is word of mouth
• Other channels can be through agents who can also facilitate on-boarding, awareness blogs, advertising, etc.
Marketing Channel Selection
Phase wise implementation

8.
Product
8

9.
Onboarding Journey
On-
board
-ing
User
Regist
ration
Error
Relatio
nship
manag
er
(Chat
Bot) +
tutorial
PAN
Aadhar
Mobile
Number
+ OTP
PAN/Mo
bile
number
incorre
ct
Prom
pt to
correc
t
No
error
OTP
Sent
Verify
OTP
Error
OTP
Incorre
ct
Prompt
to
correct
No
error
Login
Page
Landing
Page
CIBI
L
Con
sent
N User
journey
ends
User
handed
over to
sales to
convert
Initial
data
shared
by user
stored
for
analytic
s
Y
KYC
Document
s Upload
page
OCR helps with
auto population
of data once KYC
is uploaded
Error
Error could be
name/DOB/addre
ss mismatch
from KYC
uploaded and
entered
Prompt to correct
or re-upload
correct document
No error
CIBIL
Check
User
journey
ends
User handed over to
sales to educate on
steps to improve
CIBIL
N
Y
CIBIL
abov
e
thres
hold
Sanctio
n Page
Sanction Page
includes details
like Loan
Amount, tenure,
Rate, Penalty and
other terms as
agreed
E-Nach
Signing
Success
Page
**The above onboarding process remains the same for user or agent who facilitates the onboarding process on behalf of the user
Uploading
mortgage
document
s
Field
investigati
on/propert
y
inspection
This is
conducted to
ensure funds are
not misused for
other purposes
as well as
eliminate risk of
disputes over
property
Legal
examin
ation by
lawyer
Legal
examination of
property
documents and
sale deed

10.
Transaction
10
• Transaction process includes verification of documents uploaded
• Mortgage documents are studied carefully by legal experts to avoid property related disputes
• Field investigation/Due diligence is conducted to eliminate possibility of property disputes which
would cause hindrance at the time of collection by attaching property
• Disbursal can take place in a week’s time considering all documents are in order and all checks
completed
• Post disbursal assistance to be available through agents/RMs who will continue to guide the
borrowers

11.
Collection
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• User repayments can be through the
following
• Cash deposit centres
• Collection agencies for physical collection
• UPI/Virtual account transaction
User
Repayment
• Two options – A. In house dunning process;
B. Third Part Vendor
• Notification table to be used (*refer table)
Dunning
• Withholding transactions on account
defaulting on any due date
• XX number of consecutive failures in
servicing EMIs would convert user into high
risk category
• Auto Debit feature to be activated
NPA Rules
Due Date Criteria Action Taken
Due Date – X Days General Reminder
over SMS
Due Date – X Days General Reminder
over SMS
Due Date – X Days Reminder to maintain
sufficient balance
Due Date + X Days Stern Reminder
Due Date + X Days Account block and
property forfeit
Steps for Collection *Dunning Schedule
Note: Number of days is not specified here as it may vary depending on business
decisions made
The reminder can be sent out in both English and local language for better
understanding
The reminder mail/SMS may include the payment link for ease of making
payment by borrower

12.
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THANK YOU!