IIFL Home Finance Secures $300 Million ADB Loan for Affordable Housing Expansion

IIFL Home Finance has signed a $300 million loan agreement with the Asian Development Bank (ADB) to expand access to housing finance among low-income borrowers in India. As per the news reports, the transaction is the company’s first syndicated external commercial borrowing. 

The funding comprises $150 million from ADB and another $150 million raised through parallel loans from MUFG Bank, Emirates NBD, Sampath Bank, and Hatton National Bank. 

Target Borrower Segment 

The funds will be used to provide mortgage loans to low-income households, with a focus on women borrowers. Lending will be directed towards peri-urban and urban regions as well as economically lagging states where access to formal housing finance remains limited. 

Women currently account for around 13% of homeowners in India, showing a gap in ownership levels across income segments. 

Allocation Towards Green Housing 

More than 25% of the loan proceeds are expected to be used for financing green-certified affordable housing. This includes homes built using climate-resilient and sustainable construction practices. 

The funding structure links affordable housing finance with environmental considerations in the lower-income segment. 

Housing Demand and Financing Constraints 

India continues to face a housing shortage that is estimated to reach around 31 million units by 2030, largely affecting economically weaker sections and low-income households. 

Access to mortgage financing remains limited for many families due to irregular income patterns and lack of formal documentation. 

IIFL Home Finance Presence and Operations 

IIFL Home Finance focuses on first-time homebuyers from the Economically Weaker Sections (EWS) and Low-Income Group (LIG) categories, including borrowers employed in the informal sector. 

As of December 31, 2025, the company reported assets under management (AUM) of nearly ₹400 billion. It operates through 315 branches across 18 states and 2 union territories and has served more than 4.78 lakh customers since inception. 

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IIFL Finance Share Price Performance  

As of February 27, 2026, 3:30 pm, IIFL Finance share price closed at ₹494.20, a 2.15% decrease from the previous closing price. 

Conclusion 

The loan will be used to extend housing finance to low-income households. More than 25% of the funds are set aside for green-certified homes. The financing includes participation from multiple international banks.  

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