Star Housing Finance to Partner with Vastu Housing Finance

Mumbai | May 26, 2025: Star Housing Finance Limited (BSE: 539017, ISIN: INE526R01028) is partnering with Vastu Housing Finance Corporation Ltd to provide affordable housing facilities to individuals who belong to the financially weaker sections. The sections include economically weaker sections (EWS) and low-income groups (LIG) across underserved semi-urban and rural regions in India.

Co-Lending Model to Enable Inclusive Growth

The partnership is taking place to provide housing benefits to more than 5,000 first-time home buyers. Star HFC and Vastu HFC want to ensure that the financially weaker sections can also be financially included through affordable home financing. Under the partnership:

• Star HFL will handle loan origination, underwriting, and servicing for the financially weaker individuals.
• Vastu HFC will provide capital support, participate in co-underwriting, and extend technology infrastructure and risk-sharing frameworks.

Leadership Commentary

“This partnership marks a significant milestone in Star HFL’s growth journey. We value the trust Vastu HFC has placed in us and look forward to leveraging their institutional expertise. Our alliance enhances our value proposition and helps deliver homeownership to underserved communities,”

– Kalpesh Dave, Director & CEO, Star Housing Finance Ltd.

“We are excited to collaborate with Star HFL to fast-track India’s affordable housing agenda. By sharing technology and risk management, we aim to scale impact sustainably,”

– Sujay Patil, CFO, Vastu Housing Finance Corporation Ltd.

Industry Landscape & Opportunity

India’s affordable housing sector is witnessing high demand, with:

• The EWS and LIG categories contain over 95% of the urban housing shortfall.
• There is a rural housing deficit of nearly 43.7 million units.
• The average housing loan ticket size for NBFC-HFCs like Star HFL ranges between ₹8 and ₹15 lakh.
• The industry is expected to reach a market size of ₹20–25 trillion by 2030, growing at a CAGR of 20–25%.

Despite government support schemes such as PMAY, many borrowers remain excluded due to informal incomes and a lack of credit history. This partnership is expected to bridge that gap by deepening credit penetration in Tier 2, Tier 3, and rural markets.

About the Companies

Star Housing Finance Ltd. is a BSE-listed, retail-focused housing finance company specialising in long-term housing loans for EWS/LIG families. It operates in Maharashtra, Madhya Pradesh, Gujarat, Rajasthan, NCR, and Tamil Nadu, with its corporate office in Mumbai.

Vastu Housing Finance Corporation Ltd., headquartered in Mumbai, is a responsible lender committed to financial inclusion through sustainable housing finance, particularly in peri-urban and rural areas.

REF: https://www.bseindia.com/xml-data/corpfiling/AttachLive/7c4d56d5-19e7-4665-9094-b177a99b5b6e.pdf