ADB, Motilal Pact for affordable housing financing for women

ADB, Motilal Pact for affordable housing financing for women

ADB Supports IIFL Home Finance to Expand Affordable Housing Access for Women in India

The Asian Development Bank (ADB) has partnered with IIFL Home Finance Limited to provide a $300 million loan aimed at expanding affordable housing finance for low-income households in India, with a focus on women borrowers. The funding, structured as a syndicated external commercial borrowing, includes $150 million directly from ADB and $150 million in parallel loans from international lenders such as MUFG Bank, Emirates NBD, Sampath Bank, and Hatton National Bank according to reports.

The proceeds will be used to extend mortgage financing to women in economically weaker and low-income communities, particularly in peri-urban, urban, and economically lagging regions. Over 25% of the funds will support green-certified affordable housing projects, aligning with sustainability goals. ADB emphasized that the initiative addresses India's significant housing deficit, which is projected to reach 31 million units by 2030, with women constituting only 13% of homeowners as reported.

IIFL Home Finance, which primarily serves first-time homebuyers in the Economically Weaker Sections (EWS) and Low-Income Group (LIG) categories, reported assets under management of ₹39,628 crore (approximately $4.9 billion) as of December 2025. The lender operates through 315 branches across 18 Indian states and two union territories, with a focus on underserved markets, including tier-2 to tier-4 cities.

ADB Country Director for India, Mio Oka, highlighted the importance of sustainable and climate-resilient housing practices in bridging the affordability gap. "Addressing this deficit requires targeted financing solutions and policy support," Oka stated.

The partnership reflects growing reliance on multilateral funding to support long-term capital needs in India's affordable housing sector. With a significant portion of borrowers in the informal sector, the initiative aims to enhance financial inclusion while promoting environmentally sustainable development.

This collaboration underscores ADB's commitment to advancing gender equity and sustainable urbanization in India, where housing finance remains a critical challenge for millions of low-income families.