Vastu Housing Finance has received a loan of up to $50 million from United States International Development Finance Corporation (USDFC) in the form of external commercial borrowings, for a tenure of 20 years.
The company will utilise the loan to enhance credit access for low income borrowers and enable women’s home ownership in tier-II to IV towns across India, according to a press release.
Vastu Housing Finance was launched in 2015 with seed capital from Renuka Ramnath-led Multiples PE, Pramod Bhasin, Samir Bhatia and Vikram Gandhi. Its marquee investors include the International Finance Corporation, Norwest Venture Partners, Creation Investments and 360 One Asset Management.
The housing finance company focusses on providing affordable housing finance for low-income and self-employed segments. The company operates in 14 states across India and has over 4,500 employees.
Additionally, the company has set up a subsidiary Vastu Finserve, which focusses on providing small business loans and used vehicle finance loans.
“This loan will allow Vastu to extend loans to women borrowers in tier-II & III towns and rural areas of India, supporting their journey to homeownership and helping them build a secure future,” Sandeep Menon, managing director and chief executive officer, Vastu Housing Finance said.
I am grateful for DFC’s trust in Vastu’s business philosophy in furthering our mission to provide simpler, faster and affordable credit solutions to the emerging middle-class and lower-income group customers in India,” he added.
In July, US-based private equity firm TA Associates announced that it has made an undisclosed investment in the mortgage lender.
