IIFL Home Finance Ltd (IIFL HFL) has signed a $68 million loan agreement with the Asian Development Bank (ADB) to improve financial access to affordable green housing for low-income groups in India.
The funding includes a direct AfDB loan of up to $58 million and a concessional loan of $10 million from the Canadian Climate Fund for the Private Sector in Asia (CFPS). Canadian funding will also be channeled through the AfDB.
This is the first agreement of this type between the AfDB and the private sector in the country.
Of the AfDB loan, 80% will be reserved for lending to women borrowers or co-borrowers and 20% will be allocated to finance mortgage loans for certified green houses.
The CFPS loan will support the IIFL HFL’s green housing portfolio, specifically to incentivize developers to adopt green certification standards in the construction of affordable housing.
Monu Ratra, MD and CEO, IIFL HFL, said, “The AfDB funding will help us improve the penetration of affordable green housing in India’s deeper markets and fulfill the dream of many Indian families of owning their own home. clean house. We are pleased to partner with ADB on our growth journey.
To accelerate initiatives that improve access to affordable green housing to achieve the goals of the 2030 Sustainable Development Goals, it is important to actively pursue issues related to climate resilience, sustainability thinking and realizing gender balance as fundamental approaches to development. Additionally, there is a need to address the lack of awareness around green homes.
“By leveraging IIFL HFL’s focus on financial inclusion and CPFS’s leadership on climate-resilient housing, AfDB can help low-income communities manage the impacts of climate change,” said the AfDB Director General, Private Sector Operations, Suzanne Gaboury. . “We are excited to help the IIFL demonstrate to the construction industry that you can build affordable, eco-certified housing for low-income households.”
In line with the government’s commitment to “housing for all”, IIFL HFL offers affordable home loans to the Economically Weaker Section (EWS), Low Income Group (LIG) and Middle Income Group (MIG) .
Home loans were disbursed to more than 1,40,000 borrowers as of September 30, 2021.
February 21, 2022