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’s 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 20–25 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