IIFL Home Finance has secured a $300 million syndicated loan from the Asian Development Bank (ADB) and a consortium of international lenders, marking its inaugural external commercial borrowing. According to reports from CNBC TV18 and The Economic Times, this significant financing is earmarked to expand affordable housing access for low-income borrowers, particularly women, and support green-certified homes. The loan arrangement sees ADB acting as the mandated lead arranger and bookrunner, with the bank itself contributing $150 million directly to the facility. As per CNBC TV18, the transaction marks the company's first syndicated external commercial borrowing, with the remaining $150 million coming from parallel loans from a syndicate that includes Japan's MUFG, the UAE's Emirates NBD, and Sri Lanka's Sampath Bank and Hatton National Bank.
The remaining $150 million will come from parallel loans from a syndicate that includes Japan's MUFG, the UAE's Emirates NBD, and Sri Lanka's Sampath Bank and Hatton National Bank. As reported by CNBC TV18 and The Economic Times, this diversified funding structure provides the loan with additional international backing beyond the ADB's direct participation. This broad international participation underscores collective confidence in IIFL Home Finance's strategy and potential impact on addressing India's pressing housing needs.
IIFL Home Finance will on-lend the loan proceeds to provide mortgages to women in low-income communities in semi-urban and urban areas and in lagging states of India. According to CNBC TV18 and The Economic Times, the funds will be deployed to extend mortgage financing to women from low-income households, especially in peri-urban and urban regions as well as in economically lagging states. A target of over 25% of the loan proceeds will be allocated for green-certified affordable homes. Managing Director Girish Kousgi highlighted that the ADB's funding will facilitate extending affordable housing to 'deeper markets' and support the 'homeownership aspirations' of low-income families, with specific emphasis on women. The funding will extend affordable housing options into deeper markets and support aspiring homeowners in economically weaker families, emphasizing sustainable and climate-resilient construction practices.
The initiative addresses India's significant housing shortage of 31 million units by 2030, which is mostly affecting low-income groups. As reported by CNBC TV18 and The Economic Times, ADB Country Director for India, Mio Oka, noted that India's affordable housing deficit is most pronounced among economically weaker and low-income households, particularly women who constitute only 13% of homeowners. The local lender had ₹39,628 crore assets under management at the end of December last year, but as of December 31, 2025, it reported assets under management of close to ₹400 billion and operated through 315 branches spread across 18 states and two union territories. This substantial funding is expected to fuel further expansion of its loan book and bolster its market presence in the rapidly growing affordable housing segment.
For IIFL Home Finance, the funding is expected to strengthen its lending capacity in segments that are traditionally underserved by formal financial institutions. The lender primarily focuses on first-time homebuyers from the Economically Weaker Sections (EWS) and Low-Income Group (LIG) categories, many of whom work in the informal sector. As per CNBC TV18 and The Economic Times, the company has served more than 4.78 lakh customers since inception, including a large number of first-time homebuyers and women borrowers. Industry observers say multilateral funding arrangements such as this one are becoming increasingly important for housing finance companies seeking long-term capital to support lending in the affordable housing segment, with such partnerships aligning with broader efforts to promote financial inclusion and sustainable housing development in India.
