NewKerala.com

ADB's $300M Loan to IIFL Targets Women's Affordable Housing in India

IIFL Home Finance has secured a $300 million syndicated loan led by the Asian Development Bank to expand affordable housing finance for low-income borrowers in India, with a specific focus on women. The financing package, which includes parallel loans from international banks, will address the country's critical housing shortage estimated at 31 million units by 2030. A significant portion of the funds is designated for promoting green-certified, sustainable affordable homes. The initiative aims to increase homeownership among women, who currently represent only 13% of homeowners in India.

Key Points: ADB $300M Loan to IIFL Home Finance for Women's Housing

  • $300M ADB-led loan package
  • Targets low-income women borrowers
  • Aims to address 31M unit housing deficit
  • Over 25% allocated for green-certified homes
2 min read

IIFL Home Finance secures USD 300 million loan from Asian Development Bank to empower women with affordable housing finance in India

IIFL Home Finance secures a $300 million ADB loan to provide affordable housing finance for low-income women in India, targeting green homes.

"ADB's funding will help extend affordable housing to deeper markets and support the homeownership aspirations of low-income and economically weaker families, especially women. - Girish Kousgi"

New Delhi, February 27

IIFL Home Finance Limited secured a USD 300 million loan agreement with the Asian Development Bank to expand access to affordable housing finance for lower-income borrowers, specifically targeting women in India. The financing package represents the company's first syndicated external commercial borrowing and aims to address the significant housing deficit in the country.

According to a press release, the Asian Development Bank acted as the mandated lead arranger and bookrunner for the package. The total amount consists of USD 150 million directly from the Asian Development Bank and an additional USD 150 million in parallel loans from MUFG, Emirates Bank, Sampath Bank, and Hatton National Bank.

IIFL Home Finance plans to utilise these proceeds to provide mortgages to women in low-income communities across urban and peri-urban areas, as well as in lagging states.

India currently faces a housing shortage estimated at 31 million units by 2030, a crisis that primarily impacts low-income groups who often lack the formal documentation required to secure traditional mortgages.

According to the release, IIFL Home Finance also designated more than 25 per cent of the loan proceeds for green-certified affordable homes to promote sustainable construction.

"India's affordable housing deficit is most pronounced among economically weaker and low-income households, particularly women, who constitute only 13 per cent of homeowners. Addressing this gap necessitates the adoption of sustainable and climate-resilient construction practices," said ADB Country Director for India, Mio Oka. She added that the bank is pleased to support the expansion of access for low-income women homeowners while advancing green-certified housing.

The company operates as a tech-enabled housing finance entity with approximately 400 billion rupees in assets under management. As of December 31, 2025, the firm maintained 315 branches across 18 states and two union territories, focusing on the economically weaker sections of the population.

Managing Director and CEO of IIFL Home Finance, Girish Kousgi, said, "ADB's funding will help extend affordable housing to deeper markets and support the homeownership aspirations of low-income and economically weaker families, especially women. We are glad to partner once again with ADB, who have constantly supported our growth and refinancing journey, and welcome the addition of new international partner banks to our lender relationships."

- ANI

Share this article:

Reader Comments

R
Rohit P
Good step, but the real challenge is execution. Will these loans actually reach the women in the deepest parts of "lagging states" or get stuck in urban centers? Also, the green-certified homes part is smart thinking for the long term.
S
Sarah B
As someone working in development finance, this is a well-structured deal. Combining affordable housing, women's empowerment, and climate resilience checks all the right boxes. The syndication with banks like MUFG shows strong international confidence in India's housing finance sector.
A
Aditya G
31 million unit shortage is a staggering number. While this funding is welcome, it feels like a drop in the ocean. The government's PMAY needs much more such private and international partnerships to scale up meaningfully.
M
Meera T
My mother, a widow, struggled for years to get a small loan to repair our home. Targeting women, especially in low-income groups, is crucial. I just hope the interest rates are truly "affordable" and not another debt trap with a fancy name.
K
Karthik V
Positive news for the economy. This inflow of dollars and focus on green housing can create a ripple effect in construction and related industries, generating jobs. Hope the tech-enabled part means less paperwork and faster approvals for beneficiaries.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50