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IIFL Home Finance Limited raises $300 million from Asian Development Bank to expand affordable housing for womenIIFL Home Finance secures a 300 million dollar loan from Asian Development Bank and partners to boost affordable, green housing finance for low-income women in India amid a major housing deficit.By Timsy Jaipuria  February 27, 2026, 7:38:02 PM IST (Published)3 Min ReadAffordable housing lender IIFL Home Finance Limited has secured a $300 million loan from the Asian Development Bank (ADB) to expand access to housing finance for low-income borrowers in India, with a particular focus on women.

The transaction marks the company’s first syndicated external commercial borrowing. The financing package includes $150 million directly from ADB and an additional $150 million raised through parallel loans from international lenders such as MUFG Bank, Emirates NBD, Sampath Bank and Hatton National Bank, IIFL in a statement said.

According to the company, the funds will be deployed to extend mortgage financing to women from low-income households, especially in peri-urban and urban regions as well as in economically lagging states. The financing also includes a sustainability component, with more than 25% of the proceeds earmarked for green-certified affordable housing.

The move comes at a time when India continues to face a large housing shortage, particularly among economically weaker sections and low-income groups. Estimates suggest the country could see a deficit of around 31 million housing units by 2030, with access to formal housing finance remaining a challenge for many households due to irregular income streams and lack of documentation.

ADB said the partnership is aimed at addressing both the affordability gap and the limited homeownership among women in India. Women currently account for a relatively small share of homeowners, highlighting the need for targeted financing solutions and policy support to improve access to housing credit.

"India’s affordable housing deficit is most pronounced among economically weaker and low income households, particularly women, who constitute only 13 percent of homeowners. Addressing this gap necessitates the adoption of sustainable and climate resilient construction practices,” said ADB Country Director for India, Mio Oka. “We are pleased to support IIFL HFL’s leadership in expanding access to low income women homeowners while advancing affordable, green certified housing.”

For IIFL Home Finance, the funding is expected to strengthen its lending capacity in segments that are traditionally underserved by formal financial institutions. The lender primarily focuses on first-time homebuyers from the Economically Weaker Sections (EWS) and Low-Income Group (LIG) categories, many of whom work in the informal sector.

IIFL has been expanding its presence in smaller cities and emerging housing markets, including suburbs of large metropolitan areas and towns across tier-2 to tier-4 regions. Residential property is typically used as collateral for loans extended to borrowers in these segments.

As of December 31, 2025, the housing finance company reported assets under management of close to ₹400 billion and operated through 315 branches spread across 18 states and two union territories. It has served more than 4.78 lakh customers since inception, including a large number of first-time homebuyers and women borrowers.

Industry observers say multilateral funding arrangements such as this one are becoming increasingly important for housing finance companies seeking long-term capital to support lending in the affordable housing segment. Such partnerships also align with broader efforts to promote financial inclusion and sustainable housing development in India.

The latest funding is expected to support the company’s plans to scale up lending to low-income households while promoting environmentally sustainable housing projects, as demand for affordable homes continues to grow across urban and semi-urban markets.Continue ReadingTagsFinanceHome FinanceHome Loan