ADB Boosts Vastu Housing Finance with $70 Million Commitment for Affordable Home Loans

The Asian Development Bank has approved a $70 million loan for Vastu Housing Finance to expand affordable home loans, particularly for first-time and underserved borrowers. The initiative aims to assist economically weaker sections, promote women's homeownership, and strengthen financing in Tier II to IV towns in India.

The Asian Development Bank (ADB), a multilateral funding agency based in Manila, has announced a substantial commitment of USD 70 million—roughly Rs 595 crore—to Vastu Housing Finance. The funding is aimed at expanding affordable home loan access.

A significant aspect of this financial commitment is the allocation of 15% of the funds specifically for first-time borrowers, ensuring that underserved segments of the population can secure sustainable housing loans. Vastu Housing Finance, in a statement, emphasized the focus on economically weaker sections and low-income groups, with a strong emphasis on promoting homeownership among women.

Established in 2015 with seed capital from Renuka Ramnath's Multiples Private Equity and investors including Pramod Bhasin, Samir Bhatia, and Vikram Gandhi, Vastu Housing Finance specializes in providing affordable housing finance. Their primary demographic is low-income and self-employed individuals, especially women, in India's Tier II to IV towns.

(With inputs from agencies.)