Kolkata: Low cost housing financer Sitara Sewa Grih Rin Ltd has secured a Rs 120 crore debt from British International Investment which will be used to expand loan book and venture into new locations, the company announced Thursday.
The housing finance company is a unit of the Self-Employed Women’s Association (SEWA).
“The substantial investment from BII will serve as a catalyst for Sitara’s rapid expansion, empowering us to amplify our efforts in supporting the underserved,” managing director Shruti Gonsalves was quoted as saying in a press statement issued by the company.
This is the second big investment by BII, the UK’s development finance institution and impact investor, in India in quick succession. It has recently committed to lend Rs 250 crore to non-bank lender Aye Finance.
“The housing crisis in India has been exacerbated by urbanization and migration. In cities, many low-income families face challenges due to informal job natures and poor living conditions,” said Gaurav Malhotra, Director for Financial Services at BII.
“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,” he said.
Sitara started its operation in 2015 and provides loans in the range of Rs 50000 to Rs 30 lakh to women for home construction and home improvements. The company currently operates through a network of 75 branches across 9 states.
