Marquee investors-backed Ummeed Housing Finance (UHFPL), a digital affordable housing finance company, on Monday said it has received a sanction of up to USD 20 million (about Rs 160 crore) from the US International Development Finance Corporation (DFC).
The funding will be used to provide long-tenure housing finance to the Economically Weaker Sections (EWS), Lower-Income Groups (LIGs) and Middle-Income Groups (MIGs) in Tier 2, 3 & 4 cities in the country, the company said in a statement.
The company said it is backed by the four marquee investors -- Norwest Venture Partners, Morgan Stanley Private Equity Asia, Lightrock, and CX Partners.
"This is an important transaction that will provide vital financing to support increased access to affordable housing in India," said James Polan, Vice President of DFC's Office of Development Credit.
DFC is the US government's development finance institution that works with the private sector to channel development capital into emerging markets.
DFC is partnering with UHFPL to fund about 2,000 new, low-ticket mortgages, averaging USD 11,600 in size, with tenures of up to 15 years, the lender said.
"This DFC facility allows us to extend long-dated credit to the under-banked population to assist with home purchases, construction, and extension in the affordable segment. Our programme strongly encourages women co-ownership on these loans and properties," UHFPL Founder & Managing Director Ashutosh Sharma said.
The project is expected to create a positive impact in Tier 2, 3 & 4 cities of the country by improving access to institutionalised credit through affordable housing finance.
UHFPL operates through 84 branches in seven states across north and central India, the statement said, adding that the mortgage lender has Rs 1,350-crore plus assets under management.