Affordable housing finance firm Sitara has secured ₹120 crore in debt finance from UK’s development finance institution British International Investment (BII).

The firm will utilise the funds to grow its loan book and expand operations to new locations.

“Sitara will continue supporting women in realising their dream of homeownership through providing access to finance for home construction and home improvements,” the statement said.

Also read: Early-stage delinquencies rising in affordable, low-ticket home loans

Founded in 2015, Sitara, which is owned by Sewa Grih Rin, is a housing finance company registered with the National Housing Bank and regulated by the Reserve Bank of India.

The firm’s business model combines lending with social impact, focusing on the niche market of housing for families working in the informal sector

Inclusive growth

Commenting on this fundraise, Shruti Gonsalves, MD and CEO at Sitara, said, “This collaboration represents a momentous milestone for both entities, as it aligns with Sitara’s commitment to advancing social causes and driving inclusive growth. The substantial investment of ₹1,200 million from BII will serve as a catalyst for Sitara’s rapid expansion, empowering us to amplify our efforts in supporting the underserved. A key focus of this partnership is to extend home loans to women from the informal sector, thereby contributing to financial inclusion and women’s economic empowerment.”

Sitara, a housing finance company registered with the National Housing Bank and regulated by the Reserve Bank of India, has been at the forefront of providing financial solutions to under-served and low-income households since its inception in 2015.

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Its business model combines lending with social impact, focusing on the niche market of housing for families working in the informal sector. Sitara’s operations include providing loans in the range of ₹50,000 to ₹30,00,000 for house construction, extension, purchase, and renovation. The company currently operates through a network of 75 branches across 9 States.

“The housing crisis in India has been exacerbated by urbanisation and migration. In cities, many low-income families face challenges due to informal job natures and poor living conditions. We are keen to see our investment reach more underserved groups of people and create deeper and longer lasting impact on their livelihoods,” said Gaurav Malhotra, Director for Financial Services at BII.

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