New Delhi, February 27 IIFL Home Finance announced on Friday that it has signed a $300 million loan agreement with the Asian Development Bank (ADB) to improve access to affordable housing finance for low-income borrowers, particularly women.
This loan marks IIFL Home Finance's first syndicated external commercial borrowing, the mortgage lender said in a statement.
The financing package, led by ADB as the mandated lead arranger and bookrunner (MLAB), comprises $150 million from ADB and $150 million in parallel loans from MUFG (MLAB), Emirates Bank (Mandated Lead Arranger), Sampath Bank (Lead Arranger- LA) and Hatton National Bank (LA), it said.
IIFL Home Finance will lend the loan proceeds to provide mortgages to women in low-income communities in peri-urban and urban areas, as well as in lagging states of India, with a target of over 25 per cent of the loan proceeds allocated to green-certified affordable 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, said IIFL Home Finance's MD & CEO Girish Kousgi.
"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.
India is experiencing a severe housing shortage, estimated at 31 million units by 2030, mostly affecting low-income groups, it said, adding that they face several challenges in obtaining mortgages, including a lack of documentation to prove their income.