Empowering Bharat: How Star Housing Finance is Driving Financial Inclusion in Semi-Urban and Rural India

Kapesh Dave, Star Housing Finance, CEO

 By Kalpesh Dave, CEO, Star Housing Finance Ltd.

Mumbai: India’s growth story is one of resilience, diversity, and transformation. Yet, as we navigate the journey towards becoming a $5 trillion economy, one challenge persists—bridging the urban-rural divide, especially in financial inclusion. At Star Housing Finance Ltd., we see this challenge not as a constraint but as an opportunity to serve Bharat—the real India that resides in semi-urban and rural geographies.

The Financial Inclusion Imperative

Over the past decade, India has made significant strides in expanding financial access. Initiatives like Jan DhanYojana, Aadhaar, and UPI have laid the foundation for a more inclusive ecosystem. This has opened over 54.58 crore bank accounts as of January 2025. This upward trend indicates ongoing efforts to bring more individuals into the formal financial system.  Despite these advancements, challenges persist, particularly in rural areas where factors such as limited financial literacy, distance to banking facilities, and lack of digital infrastructure continue to hinder full financial inclusion. But financial inclusion goes beyond access—it must translate into meaningful use.

In housing finance, this gap is still significant, especially for the Economically Weaker Sections (EWS) and Low-Income Groups (LIG). These segments, which form the backbone of India’s workforce, often remain underserved by traditional financial institutions due to informal income documentation, lack of credit history, and limited financial literacy.

Star Housing’s Mission: Democratizing Homeownership

At Star Housing Finance, our mission is simple yet powerful: to empower families from EWS and LIG segments in tier II, III towns and rural areas to achieve homeownership. For us, a house is more than a structure—it is a foundation for dignity, security, and upward mobility.

Our operations are rooted in states like Maharashtra, Madhya Pradesh, Rajasthan, Gujarat, and Tamil Nadu, where the need for affordable housing finance is pronounced. By focusing on geographies that mainstream financial players often overlook, we are rewriting the rules of engagement in India’s housing finance landscape.

Bridging the Credit Gap with Innovation and Empathy

We have built a lending model that is both tech-enabled and touch-intensive. This hybrid approach allows us to assess informal incomes with field-based credit appraisal techniques. Provide doorstep services, reducing the friction of accessing finance in remote areas. Offer small-ticket loans, typically in the ₹5–15 lakh range, that suit our target customers’ needs. Ensure fast turnaround times, leveraging digital tools for credit processing while maintaining personalized customer interaction

As of FY2025, Star Housing Finance has disbursed over ₹500 crore in loans, with more than 75% of our customers being first-time homebuyers from the EWS/LIG segment. Our average loan size remains under ₹10 lakh—testimony to our focus on true financial inclusion rather than volume chasing.

The Evolution of Rural Lending

Historically, rural India has been viewed as credit-risk heavy due to its informal economy and perceived volatility. However, the reality is shifting. Digital penetration has soared, with rural smartphone usage doubling over the past five years. Aspirations are rising—families in small towns and villages are seeking quality housing, sanitation, and upward mobility. Policy support is robust, with initiatives like PMAY-Urban/Rural, Credit Linked Subsidy Scheme (CLSS), and NHB refinance making low-cost housing viable.

These trends converge to create a fertile ground for institutions like Star Housing, which understand the nuances of rural credit and are willing to co-create solutions with the community.

A Future-Oriented Approach: ESG and Beyond

Financial inclusion is not merely a business objective—it aligns with broader Environmental, Social, and Governance (ESG) goals. By funding affordable housing, we contribute to:

  • SDG 11: Sustainable Cities and Communities
  • SDG 1: No Poverty
  • SDG 10: Reduced Inequality

We are also investing in green housing initiatives, collaborating with developers and NGOs to promote cost-effective, environmentally sustainable housing solutions for rural families.

The Road Ahead

India’s next wave of growth will come from its hinterlands. At Star Housing Finance, we are committed to being enablers of this change—fuelling aspirations, unlocking capital for underserved families, and building not just homes, but futures.

Our goal over the next three years is to expand our presence to over 100 districts across six states Maharashtra, Gujarat, Madhya Pradesh, Rajasthan, NCR and Tamil Nadu. We aim to disburse ₹2,000 crore in affordable housing loans, and continue deepening our engagement with the EWS/LIG community. Through inclusive lending practices, responsible financing, and community-centric solutions, we aim to help Bharat rise with dignity and determination.

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