Ummeed Housing Finance has received a sanction of up to $20 million (₹160 crore) from the US International Development Finance Corporation (DFC).

The Gurgaon-based, digital affordable housing finance company will use the funds to offer long-tenure housing finance to the Economically Weaker Sections (EWS), Lower-Income Groups (LIGs) and Middle-Income Groups (MIGs) in Tier 2, 3 and 4 cities.

“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,” said Founder and MD Ashutosh Sharma.

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

The lender has been recognised as a ‘2X Challenge’ eligible enterprise, which is a global initiative supporting women’s economic empowerment by mobilising capital to invest in businesses and projects that benefit women in emerging markets.

Set up in 2016, Ummeed Housing operates through 84 branches in seven states across North and Central India, and has a fully digitised loan approval and disbursal system. It also offers secured business loans to MSMEs.

It has disbursed over 24,000 loans so far, in the range of ₹3 lakh to ₹50 lakh for home purchases, construction, renovations and repairs, loans against property, and business loans, and has assets under management of ₹1,350 crore.

Marquee investors include Norwest Venture Partners, Morgan Stanley Private Equity Asia, Lightrock, and CX Partners. The other borrowings are from over 25 lenders, including Public and Private Sector Banks, Global Development Financial Institutions and Domestic Financial Institutions, the company said.