Star Housing Finance Ltd (HFL), a leading retail focused semi-urban/rural housing finance company, has announced its partnership with Tata Capital Housing Finance Ltd (TCHFL). The collaboration aims to provide more affordable rates for economically weaker sections (EWS) and low-income groups (LIG) by leveraging the strength of TCHFL and the distribution of Star HFL.
Tech-Powered Co-Lending Approach
With a tech-powered co-lending approach, this partnership intends to serve customers across multiple geographies, utilizing their differential origination capabilities and varying levels of franchise on the borrower base. The goal is to create a quality loan book and cater to the underserved segment of prospective homebuyers who lack access to formal credit.
Ambitious Targets
Kalpesh Dave, CEO of Star HFL, expressed satisfaction with the partnership, stating that it validates their journey and continued focus on creating a quality loan book. In the first phase of 6-8 operational quarters, the company aims to service 5,000 families in their operational geographies. The long-term objective is to establish a mutually beneficial and long-lasting relationship with TCHFL.
Strength in Collaboration
A spokesperson from Tata Capital Housing Finance expressed their happiness to collaborate with Star HFL for this co-lending partnership. The collaboration is dedicated to meeting the needs of underserved prospective homebuyers, thereby empowering them to fulfill their dreams of homeownership. Not only will this partnership cater to an aspiring segment of customers, but it will also enhance Tata Capital’s loan portfolio with quality assets.
This partnership between Star Housing Finance Ltd and Tata Capital Housing Finance Ltd represents a positive step towards achieving financial inclusion and making homeownership more accessible to individuals from the EWS and LIG segments. Together, they are leveraging their strengths and distribution networks to provide affordable housing finance options to those who have traditionally faced challenges in obtaining formal credit. As the partnership progresses, it is expected to bring about significant positive changes in the affordable housing sector.
