Vastu Housing Finance Corporation Expands Micro-Housing Loans To Empower Low-Income Households

Vastu Housing Finance Corporation, recognised as one of the country's fastest-growing housing finance companies, is set to broaden its portfolio by venturing into the micro-housing segment in Delhi. 

This strategic move is aimed at providing tailored financial solutions to low-income households in rural and semi-urban areas, facilitating their journey towards homeownership. The micro-housing product, introduced by Vastu Housing Finance (Vastu HFC), will leverage its well-established national franchise spanning across 15 states to deepen its presence in Tier II, III, and IV market segments.

The newly designed micro-housing loans are specifically crafted to cater to individuals involved in small businesses within unorganised sectors such as catering, grocery shops, pharmacies, tailors, and bakeries. These borrowers, often new to credit, typically have a monthly household income ranging from INR 15,000 to INR 25,000. Through its extensive network of over 200 branches and a transparent, digital platform, Vastu HFC aims to offer credit access while simplifying loan processes and enhancing financial awareness among these customers.

Sandeep Menon, Founder, Managing Director, and Chief Executive Officer of Vastu Housing Finance Corporation, highlighted the social impact of the housing sector on the nation's development. "The focus on micro-housing as a category is reflective of our commitment to creating channels of credit access for the underserved and a step towards furthering financial inclusion," said Menon. He emphasised the company's dedication to empowering women, noting that almost every home loan they provide involves a woman as either the borrower or co-borrower.

India's housing finance sector is witnessing stable growth at a Compound Annual Growth Rate (CAGR) of 16 per cent, driven by increasing disposable incomes, high demand, urbanisation, and government initiatives like the Pradhan Mantri Awas Yojana (PMAY). 

Vastu HFC, with its emphasis on economically weaker sections (EWS) and low-income groups (LIG), is uniquely positioned to meet this rising demand. The company leverages its proprietary tech ecosystem, Pulse, to facilitate specialised underwriting based on data, ensuring secure and swift loan disbursals.

Vastu HFC's tech-led approach involves identifying income and lifestyle trends through data, aligning with the evolving needs of the market. The company plans to continue its investment in micro-housing loans, drawing insights from the pilot project. With the expansion, Vastu HFC has hired approximately 400 team members across eight states, reinforcing its commitment to building a robust foundation while generating employment opportunities. Interested customers can visit any of Vastu Housing Finance branches to apply for this innovative micro-housing loan.