This case study outlines a collaboration between the Indian Housing Federation (IHF) and the Tamil Nadu Slum Clearance Board, the state level nodal agency for the Pradhan Mantri Awas Yojana – Urban (PMAY-U) in Tamil Nadu, to enhance the availability of micro housing finance for low-income communities through formal channels. EWS households struggle to secure financing from formal channels to meet the funding gap, which jeopardises their chances of completing the house. There is a key role to be played by the primary lending institutions (PLIs) in bridging this gap. A partnership has been formed in Tamil Nadu with the overall goal of fostering a housing finance market where government-identified beneficiaries have access to market instruments offered by the PLIs and the freedom to choose the most suitable lender, and lending institutions can identify customers suitable to their product offering. The result is a win-win situation for all the stakeholders, who were earlier working in silos due to the lack of a concerted effort to bring them together. While the government achieves the mission goal and beneficiaries successfully complete/purchase their own house and get linked to the banking system, the PLIs gain from improved business with enhanced width and/or depth in their product offerings.