Housing finance firm Sitara secures Rs 120 crore of debt from British International Investment

Founded in 2015, Sitara is a housing finance company.

Affordable housing finance firm Sitara, which is owned by Sewa Grih Rin, has secured Rs 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, the firm said in a media statement on December 14.

"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.

Founded in 2015, Sitara 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

Sitara's operations include providing loans in the range of Rs fifty thousand to thirty lakh for house construction, extension, purchase, and renovation. The Company currently operates through a network of 75 branches across 9 states.

"The substantial investment of Rs 1,200 Mn 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 MD and CEO Shruti Gonsalves said.

The lending firm raised Rs 67 crore in March 2019 from a series of investors including OikoCredit, Omidyar Network and HDFC Life Insurance Corporation.

"We are delighted to work with Sitara and enable access to affordable housing finance, particularly for low-income households and women, to build safer and better homes,” Gaurav Malhotra, director for financial services at BII said.