The Asian Infrastructure Investment Bank (AIIB) has signed a USD100-million (in equivalent Indian Rupees) facility with IIFL Home Finance Limited (IIFLHF) to improve financial access to affordable housing in India, specifically targeting the economically weaker sections (EWSs) and low-income groups (LIGs). This investment will also promote green building practices aligned with India’s climate goals.
The initiative complements India’s Nationally Determined Contributions under the Paris Agreement and supports government initiatives such as the Pradhan Mantri Awas Yojana – Urban 2.0, which seeks to address urban housing shortages. It also supports AIIB’s Sustainable Cities Strategy and its thematic priority of Green Infrastructure, emphasizing both social value and environmental sustainability.
“This investment reflects AIIB’s commitment to inclusive and sustainable infrastructure”, said Gregory Liu, Director General of AIIB’s Financial Institutions and Funds Clients Department, Global. “By partnering with IIFLHF, AIIB is helping to advance India’s green building agenda while bridging the housing gap for low-income families in India.”
In urban areas, EWS and LIG households face significant challenges in accessing affordable housing, often leading to reliance on informal housing or inadequate living conditions. Developers also encounter difficulties in securing financing for affordable housing projects due to high construction costs and land prices.
AIIB’s funding will support both the demand and supply sides of India’s affordable housing ecosystem. On the demand side, it will enable IIFLHF to provide home loans to households (primarily those within the EWS and LIG) for purchasing or constructing their housing units. On the supply side, it will support IIFLHF in financing developers of affordable housing projects. Part of the proceeds will also support IIFLHF’s green housing portfolio, encouraging developers to adopt green certification standards in building affordable housing projects.
“The funding from AIIB will enable us to further our commitment to expanding homeownership opportunities for EWS and LIG families across India”, said Monu Ratra, Executive Director and CEO of IIFLHF. “It will also strengthen our efforts to enhance the reach and impact of green, affordable housing solutions that promote more sustainable and resilient living environments. We are honored to partner with AIIB in advancing this shared vision.”
This partnership marks AIIB’s first engagement with IIFLHF, expanding its collaboration with India’s non-banking financial companies and paving the way for future collaborations with housing finance institutions to support inclusive and sustainable urban development.
