Star Housing Finance Ltd has launched a co-lending partnership with Vastu Housing Finance Corporation Ltd to support over five thousand first-time home buyers across India鈥檚 underserved regions. The alliance focuses on extending affordable housing loans to economically weaker sections and low-income groups in semi-urban and rural markets.
Under the agreement, Star HFL will manage loan origination and servicing, while Vastu HFC will provide capital support, participate in co-underwriting, and offer its technology and risk-sharing platform.
This collaboration aims to bridge the credit gap for borrowers lacking formal income proof or documentation, where 95 per cent of urban housing demand arises from lower-income segments and rural India faces a 43.7 million unit shortfall.
The companies target loan sizes between Rs 800,000 and Rs 1.5 million. With the housing finance market projected to reach Rs 20鈥�25 trillion by 2030, growing at twenty to twenty-five per cent annually, the partnership is well positioned to scale operations and deepen rural reach.
Star HFL operates across six states, offering long-term housing loans, while Vastu HFC focuses on sustainable financial inclusion in peri-urban and rural areas.
Source:Press release by Star Housing Finance Ltd聽
