ADB & Aadhar housing partners to give housing loans to low-income women
The financing will be utilised to provide housing loans to women and address the shortage of financing in the low-income and affordable housing segment in the country.
ANI
Jun 26, 2024 12:23 IST
New Delhi [India], June 26 (ANI): The Asian Development Bank (ADB) signed a USD 60 million nonconvertible debentures financing agreement, disbursing USD 30 million to Aadhar Housing Finance Limited (AHFL) to provide housing loans to women and address the shortage of financing in the low-income and affordable housing segment in India.
As per a release, half of the funds will be deployed in Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan, Uttar Pradesh, and West Bengal.
ADB Director General for Private Sector Operations Suzanne Gaboury highlighted that poor households often struggle to meet bank loan requirements and typically finance their homes through savings, borrowing from family or friends, or from moneylenders at high interest rates. Women, in particular, face greater challenges accessing formal financing. Gaboury emphasized that companies like AHFL cater to these communities with tailored products, and ADB's support will enhance AHFL's capacity to reach more underserved families seeking home ownership.
Reacting to the development Rishi Anand, Chief Executive Officer at AHFL said, "The tie-up with ADB is a step further in creating a stronger network of self-owned, low-income houses, helping to fulfil the aspirations of the economically weaker sections of society."
"AHFL aims to increase financial penetration by focusing on growing our share of the low-income housing segment mortgage market in India and continuing to focus on the salaried and self-employed categories from the economically weaker and low- to middle-income segments of the Indian economy," he added.
AHFL is a housing finance company in India focused on the low-income housing segment, with loan sizes under 1.5 million Indian rupees (around USD 17,976), the company claims.
According to the release, the company targets lower-income borrowers and offers loans with an average size of 900,000 Indian rupees (around USD 10,875) through its network of 471 branches across 20 states and union territories as of September 2023.
ADB prioritises projects on basic services, critical infrastructure and services, institutional strength, and private sector development through sovereign operations in low-income states. Established in 1966, ADB is owned by 68 members, including 49 from the region. (ANI)
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