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IIFL Home Finance has secured a USD 100 million, five-year loan from AIIB to expand lending for affordable and low-cost housing development, marking AIIB's first such partnership with the firm. The loan carries an 8.58% cost per annum, includes a 1.5-year moratorium, and promotes green building practices. Serving underserved regions across 18 states, IIFL Home Finance already manages INR 40,000 crore in assets, two-thirds of which are affordable housing loans. This marks a significant step toward meeting housing demand among EWS/LIG families while advancing eco-friendly infrastructure in line with India's climate ambitions.
IIFL Home Finance, which is backed by the Abu Dhabi Investment Authority (ADIA) and operates under IIFL Finance, has obtained a USD 100 million loan from the Asian Infrastructure Investment Bank (AIIB). This marks the first time AIIB has partnered with IIFL Home Finance to promote accessible home loans for economically weaker sections (EWS) and low-income groups (LIG), as well as to support low-cost housing developers. Advertisement
The financing spans five years at an annual all-inclusive cost of 8.58%, with a principal moratorium of 18 months, followed by equal half-yearly principal repayments over the remaining 3.5 years. Funds are earmarked not only for retail affordable mortgages but also for builders engaged in low-cost apartment projects, helping to bridge the housing shortage in high-demand locations.
AIIB has emphasised that the funding aligns with environmental objectives, promoting green building practices and supporting India's climate targets. According to Gregory Liu, director general of AIIB's financial institutions division, the investment reflects the bank's dedication to inclusive, sustainable infrastructure financing and will aid both homeownership and environmentally responsible building.
Available records indicate that AIIB was established in 2016 and currently has 110 approved members, with a capital base of USD 100 billion. IIFL Home Finance has previously raised external commercial borrowings; this constitutes its second such raising in the current fiscal year. The firm manages approximately INR 40,000 crore in assets, with two-thirds of its portfolio comprising affordable housing loans.
The mortgage financier maintains a widespread presence across 18 states with 376 branches, focusing on underserved and emerging geographies in tier-1 suburbs and tier-2 through tier-4 towns. ADIA holds a 20.41% stake in the company, with the remaining 79.59% retained by IIFL Finance.
Source: PTI
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