Low-cost home financer Sitara raises ₹120 crore from British International Investment

Incepted in 2015, Sitara currently operates through a network of 75 branches across 9 states. Its business model combines lending with social impact, focusing on the niche market of housing for families working in the informal sector. Sitara's operations include providing loans in the range of ₹50,000 to ₹30 lakhs for house construction, extension, purchase, and renovation. The firm is registered with the National Housing Bank and regulated by the Reserve Bank of India.

"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. 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. We are keen to see our investment reach more underserved groups of people and create deeper and longer lasting impact on their livelihoods," said Gaurav Malhotra, Director for Financial Services at BII.

Sitara claims to have played a pivotal role in advancing the formalisation of land titles, transforming 47% of loans from informal to formal status. Additionally, it said 48% of assets are financed in the name of women, marking a significant stride towards empowering women in property ownership and economic participation.