ADB and AHFL Partner to Expand Housing Loans for Low-Income Women

The Asian Development Bank (ADB) has entered into a $60 million financing agreement with Aadhar Housing Finance Limited (AHFL) to provide housing loans to women in India. The initiative aims to address the shortage of financing in the low-income and affordable housing segment. Half of the funds will be deployed in Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan, Uttar Pradesh, and West Bengal.

Key Points

Financing Agreement Details

ADB signed a $60 million nonconvertible debentures financing agreement with AHFL.
$30 million has been disbursed so far.
The financing is aimed at lending exclusively to women borrowers or co-borrowers.

Addressing Financing Gaps

Poor households often resort to savings, borrowing from family or moneylenders due to difficulties meeting bank loan requirements.
Women particularly face greater challenges accessing formal financing channels.

AHFL’s Commitment and Strategy

AHFL focuses on increasing financial penetration in the low-income housing segment.
Targeting salaried and self-employed individuals from economically weaker and low- to middle-income groups.
Average loan size offered by AHFL is 900,000 Indian rupees (around $10,875).
AHFL operates through a network of 471 branches across 20 states and union territories as of September 2023.

ADB’s Role and Vision

ADB supports inclusive, resilient, and sustainable development in Asia and the Pacific.
Established in 1966, ADB is owned by 68 members, including 49 from the region.
Focuses on projects that provide basic services, critical infrastructure, and institutional strength, especially in low-income states.

Statements from Leadership

Suzanne Gaboury, ADB Director General for Private Sector Operations, highlighted the struggle of poor households and the specific challenges faced by women in accessing financing.
Rishi Anand, CEO of AHFL, emphasized the partnership with ADB as a step towards increasing home ownership among economically weaker sections and fulfilling their housing aspirations.