Star Housing Finance partners with Tata Capital to boost affordable housing finance

In a strategic move poised to significantly impact the affordable housing finance sector, Star Housing Finance Ltd (Star HFL), a key player known for its retail focus in semi-urban and rural housing finance, has forged a co-lending partnership with Tata Capital Housing Finance Limited (TCHFL). This collaboration aims to combine Star HFL’s expertise in the low-ticket affordable housing finance space with the operational synergies of both entities, setting the stage for enhanced growth in Star HFL’s Assets Under Management (AUM).

Star HFL, listed on the Bombay Stock Exchange (BSE: 539017), has undergone a transformation into a professionally managed housing finance entity, underscored by a robust risk and governance framework. Today, the company boasts a multi-state presence across key Indian states including Maharashtra, Madhya Pradesh, Gujarat, Rajasthan, NCR, and Tamil Nadu. This extensive branch network will play a crucial role in the partnership, primarily focusing on providing housing finance assistance to the economically weaker section (EWS) and low-income group (LIG) segments.

Kalpesh Dave, CEO of Star HFL, expressed his enthusiasm about the partnership, stating, “We value this partnership with Tata Capital Housing Finance Limited. This partnership validates our journey and continued focus to create a quality loan book.” He further highlighted the goal to service 5,000 families in the initial phase of 6-8 operational quarters, anticipating a long and mutually beneficial relationship with TCHFL.

Echoing Mr. Dave’s sentiments, Ashish Jain, MD of Star HFL, shared his optimism about the co-lending partnership’s potential to enhance credit access for underserved segments of prospective home buyers. “There is an underserved segment of prospective home buyers who do not have formal credit access and therefore their home owning dreams remain unrealized,” Mr. Jain noted. Through this partnership, Star HFL and TCHFL aim to augment credit access for deserving customers in this addressable segment while simultaneously building a high-quality loan book.

This co-lending partnership between Star Housing Finance Ltd and Tata Capital Housing Finance Limited marks a significant milestone in the affordable housing finance sector, promising to address the critical need for housing finance among India’s EWS and LIG segments. As both teams embark on this collaborative journey, the initiative is expected to bring about positive changes in the lives of thousands of families, fulfilling their dreams of home ownership and contributing to the broader goal of financial inclusion in the housing sector.