New Delhi: National Housing Bank (NHB) and three others have joined hands to form the country's first mortgage guarantee firm, a development expected to improve and expand access to housing.

The other members of the joint venture company, which has an initial paid up capital of Rs 120 crore, are -- Genworth, Asian Development Bank and International Finance Corporation.

"IMGC (India Mortgage Guarantee Corporation) will offer mortgage guarantees against borrower defaults on housing loans from mortgage lenders, which will help to expand access to housing in India," the joint venture company said in a statement.

In the JV, housing regulator NHB has a shareholding of 38 per cent, Genworth has a stake of 36 per cent, while both ADB and IFC (a World Bank member) have 13 per cent stake each.

The initial paid-up capital will be increased to support IMGC's growth over time, the statement added.

NHB Managing Director R V Verma said,"...NHB has been part of this project through the years. The company will operate under the regulatory jurisdiction of the RBI."

IMGC will operate on a commercial basis and its primary clients will be Housing Finance Companies (HFCs) and banks that are responsible for the majority of mortgage lending.

Thomas Davenport, IFC Director for South Asia said the new company will help expand access to affordable housing finance across income segments and regions.

Vice-President of Private Sector and Co-Financing Operations at ADB Lakshmi Venkatachalam said that IMGC will not only benefit banks and HFCs, but also to many new home borrowers.

Genworth's Global Mortgage Insurance Division New Market Leader Stuart Take said the JV will allow Indians to accelerate their dream of home ownership.

A mortgage guarantee company provides credit guarantee to housing finance companies and banks on behalf of home loan borrowers. The guarantees are invoked in case of default by home loan borrowers.