Ummeed HFC gets up to $20 mn sanction from U.S. International DFC 

Ummeed Housing Finance Private Limited (UHFPL), a Gurgaon based digital affordable housing finance company (HFC), has received a sanction of up to $20 million (approx. Rs 160 crore) from the U.S. International Development Finance Corporation (DFC). The funding will be used for providing long-tenure housing finance to the Economically Weaker Sections (EWS), Lower-Income Groups (LIGs) and Middle-Income Groups (MIGs) in Tier 2, 3 & 4 cities in the country, says a press release issued by the company.

DFC is the US government’s development finance institution that works with the private sector to channel development capital into emerging markets. In this instance, DFC is partnering with UHFPL to fund approximately 2,000 new, low-ticket mortgages, averaging $11,600 (around Rs 9 lakh) in size, with tenures of up to 15 years. 

The project is expected to create a positive impact in Tier 2, 3 & 4 cities of India by improving access to institutionalized credit through affordable housing finance. Ashutosh Sharma, Founder & Managing Director, UHFPL, said, “It is a proud moment for us to be associated with the U.S. International Development Finance Corporation. This DFC facility allows us to extend long dated credit to the underbanked population to assist with home purchases, construction, and extension. Our programme strongly encourages women co-ownership on these loans and properties. Our technology-enabled platform delivers shorter turnaround times on these loans which is an important requirement from our customer segment”.

“This is an important transaction that will provide vital financing to support increased access to affordable housing in India,” said James Polan, Vice President of DFC’s Office of Development Credit. “The project will help India meet its growing demand for affordable housing and grow homeownership among women.”