Ummeed Housing Finance has received an approval of up to $20 million (₹160 crore) from the US International Development Finance Corporation (DFC).
The Gurgaon-based digital affordable housing finance company will use the funds to provide long-term housing finance to economically weaker sections (EWS), lower income groups (LIGs) and middle income groups (MIGs) in tier 2, 3 and 4 cities.
“This DFC facility enables us to provide long-term loans to the under-banked population to help them buy, build and expand their homes. Our programme strongly encourages women’s co-ownership of these loans and properties,” said Ashutosh Sharma, Founder and Managing Director.
DFC is the US government’s development finance institution that works with the private sector to channel development capital to emerging markets. It is working with Ummeed Housing to fund around 2,000 new low-cost mortgages averaging $11,600 (Rs 9 lakh) with tenures of up to 15 years.
The lender has been recognised as an eligible company for the 2X Challenge, a global initiative that supports women’s economic empowerment by mobilising capital to invest in businesses and projects that benefit women in emerging markets.
Founded in 2016, Ummeed Housing operates through 84 branches across seven states in north and central India, and has a fully digitised loan approval and disbursement system. It also offers secured business loans to MSMEs.
It has so far disbursed over 24,000 loans in the range of ₹3 lakh to ₹50 lakh for home purchase, construction, renovation and repair, home loans and business loans, and has assets under management of ₹1,350 crore.
Key investors include Norwest Venture Partners, Morgan Stanley Private Equity Asia, Lightrock and CX Partners. The remaining loans are from over 25 lenders, including public and private sector banks, global development finance institutions and domestic financial institutions, the company said.
