Ummeed Housing Finance secures $20 million from US Development Finance Corporation

Ummed Housing brags $20 million from USDFC: Ummeed Housing Finance Private Limited (UHFPL), a digital affordable housing finance company backed by major investors, announced on Monday that it has received a sanction of up to $20 million (approximately Rs 160 crore) from US International Development Finance Corporation (DFC).

This funding injection will be directed towards providing extended-term housing finance to Economically Weaker Sections (EWS), Lower-Income Groups (LIGs), and Middle-Income Groups (MIGs) in Tier 2, 3, and 4 cities across India, as stated by company.

UHFPL is supported by four major investors, namely Norwest Venture Partners, Morgan Stanley Private Equity Asia, Lightrock, and CX Partners.

James Polan, Vice President of DFC's Office of Development Credit, said, "This is an important transaction that will provide vital financing to support increased access to affordable housing in India,"

Channelling development capital into emerging markets

DFC, US government's development finance institution collaborating with private sector to channel development capital into emerging markets, is partnering with UHFPL to finance around 2,000 new, small-ticket mortgages, averaging $11,600 in size, with tenures of up to 15 years, as mentioned by lender.

Ashutosh Sharma, Founder and Managing Director of UHFPL, highlighted, "This DFC facility allows us to extend long-dated credit to under-banked population to assist with home purchases, construction, and extension in affordable segment. Our programme strongly encourages women co-ownership on se loans and properties." 

Anticipated to have a positive impact in Tier 2, 3, and 4 cities across India, project aims to enhance access to institutionalised credit through affordable housing finance.

UHFPL operates through 84 branches in seven states across north and central India, and it manages assets exceeding Rs 1,350 crore, according to statement.

(With PTI inputs)