Vastu Housing Finance Secures $50M Loan for Boosting Low-Income Housing

Vastu Housing Finance has secured up to $50 million from the US International Development Finance Corporation through a 20-year loan. This funding will enhance credit access for low-income borrowers and promote women's homeownership in India. The lender, established in 2015, focuses on affordable housing finance, especially for women borrowers.

Vastu Housing Finance announced on Friday that it plans to secure up to $50 million in a 20-year loan from the US International Development Finance Corporation.

An agreement for this external commercial borrowing has been signed between the two organizations, as per an official statement.

The funds will be utilized to enhance credit access for low-income borrowers, with a particular focus on fulfilling housing needs and encouraging women's homeownership in Tier II to IV towns across India.

Vastu Housing Finance has a strong focus on affordable housing finance for low-income and self-employed segments, emphasizing support for women borrowers.

With assets under management amounting to $1.14 billion, Vastu, which started in 2015, operates in 14 states and employs over 4,500 people.

The company began with seed capital from Renuka Ramnath-led Multiples Private Equity and prominent investors, including The International Finance Corporation (IFC), Norwest Venture Partners, Creation Investments, 360 One Asset Management Limited, TA Associates, and Faering Capital.

(With inputs from agencies.)