IIFL Home Finance Ltd (IIFL HFL) has secured a debt-funding of up to USD 100 million from International Finance Corporation, a joint statement said on Monday. The debt-funding will help IIFL HFL increase home finance to the economically weaker sections (EWS) and low-income groups(LIG), including women borrowers.
The need for affordable housing is estimated at 38 million units by 2030, of which EWS and LIG represent over 96 per cent.
Under the loan agreement, 50 per cent of funding is earmarked to promote housing finance for women borrowers, and the remaining is dedicated to financing green housing for buyers in this underserved segment, the statement said.
It however did not disclose the loan details such as tenor and the interest rate.
According to IFC estimates, the country’s green buildings market accounts for only 6 per cent of the residential buildings, despite representing a USD 1.25 trillion opportunity between now and 2030.
As part of the partnership, IFC will provide a performance-based incentive from the UK-IFC Market Accelerator for Green Construction Programme to accelerate the implementation of IIFL HFL’s green building strategy and catalyze the uptake of green-certified affordable housing units.
“Together, we aim to pave the way for other housing finance companies and development finance institutions to further the cause,” Monu Ratra, CEO of IIFL HFL said.
Through this investment, IFC aims to bolster financial inclusion, improving access to funds for low-income women borrowers while developing the nascent green housing segment in the country, said Allen Forlemu, IFC’s Regional Industry Director for Financial Institutions Group, Asia and the Pacific.
Affordable and green housing remains a strategic focus area for IFC in India, having invested over USD 2.2 billion since 2013 in housing finance companies and developers in the country for on-lending.
