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.
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.
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.
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 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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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.
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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Published on: Mar 2, 2026, 8:22 AM IST
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