Mumbai | May 26, 2025 : Star Housing Finance Ltd (BSE: 539017), a
retail-focused housing finance company specializing in low-ticket home loans,
has kick-started its co-lending partnership with Vastu Housing Finance
Corporation Limited, India’s leading affordable housing finance company.
This collaboration aims to assist over 5,000 first-time home buyers across
multiple Indian states, with a focus on semi-urban and rural markets.
The partnership reflects both organizations' shared mission of advancing
financial inclusion by offering accessible and affordable home
financing to economically weaker sections (EWS) and low-income groups (LIG),
particularly those traditionally excluded from the formal credit system.
Through this co-lending model, Star HFL will be responsible for loan
origination, underwriting, and servicing in line with all extant regulations.
Vastu HFC will contribute capital support, participate in co-underwriting, and
offer a robust technology platform and risk-sharing framework - enabling both
institutions to scale operations while managing risk efficiently.
“This partnership marks a significant milestone in Star HFL’s growth
journey,” said Mr. Kalpesh Dave, Director & CEO of Star Housing
Finance Ltd. “We deeply value the trust Vastu HFC has placed in us and
look forward to leveraging their decade-long expertise and institutional
capabilities. This alliance enhances our value proposition and supports our
goal of delivering home ownership opportunities to underserved communities.”
Mr. Sujay Patil, Chief Financial Officer of Vastu Housing Finance
Corporation Ltd., added, “We are excited to collaborate with Star HFL
to drive financial inclusion and foster a sustainable affordable housing
ecosystem. By sharing technology infrastructure and risk management frameworks,
we aim to collectively fast-track progress on India’s affordable housing
agenda.”
The affordable housing sector in India is experiencing robust demand,
with over 95% of the urban housing shortfall concentrated in EWS and LIG
categories, alongside a rural deficit of 43.7 million units. Despite supportive
schemes like PMAY, many potential borrowers still face challenges accessing
formal credit due to informal income structures and lack of documentation.
NBFC-HFCs such as Star HFL play a critical role in bridging this gap,
with average loan sizes ranging between ₹8-15 lakh. With the market poised to
grow to ₹20-25 trillion by 2030 at a CAGR of 20-25%, such partnerships are
crucial for scaling impact, strengthening credit portfolios, and deepening
reach into Tier 2, Tier 3, and rural markets.
About Star Housing Finance Limited (Star HFL):
Star HFL is a BSE listed retail housing finance company. The Company
has been operational in the low-cost housing space. Star HFL provides long term
housing finance assistance to EWS/LIG families towards purchase/construction of
low-cost housing units (affordable housing) in its operational geographies.
Star HFL is a professionally managed Company with a presence across states of
Maharashtra, Madhya Pradesh, Gujarat, Rajasthan, NCR and Tamil Nadu with its
Registered & Corporate Office in Mumbai, Maharashtra.
About Vastu Housing Finance Corporation Limited (Vastu HFC):
Vastu Housing Finance Corporation Ltd. is a Mumbai-based housing
finance company dedicated to providing responsible and sustainable financial
solutions in India. With a strong emphasis on financial inclusion, Vastu
focuses on serving underserved communities in peri-urban and rural areas,
helping individuals and families achieve homeownership and financial
independence.
For further details contact:
Dinesh Kirupalli
Star Housing Finance Ltd | Email: dinesh.kirupalli@starhfl.com