IFC approves a $100 million loan to IIFL Home Finance

21 Aug 2023 , 03:25 AM

According to a joint statement released on Monday, IIFL Home Finance Ltd (IIFL HFL) has acquired a debt-funding from the International Finance Corporation of up to USD 100 million. Increased house financing for economically disadvantaged groups (EWS) and low-income groups (LIG), particularly female borrowers, will be made possible by the debt funding, according to IIFL HFL.

By 2030, there will be a 38 million unit housing shortage, with EWS and LIG accounting for more than 96% of those units.

According to the loan agreement, 50% of cash will be used to encourage women borrowers to finance their homes, and the remaining money will be used to finance green homes for purchasers in this underserved market, according to the statement.

However, it omitted information about the loan, such as the tenor and the interest rate.

Despite offering a USD 1.25 trillion opportunity between now and 2030, the country’s green buildings sector only makes up 6% of residential buildings, according to IFC projections.

In accordance with the agreement, IFC will offer a performance-based incentive through the UK-IFC Market Accelerator for Green Construction Programme to hasten the implementation of IIFL HFL’s green construction strategy and spur demand for affordable housing that has received green certification.

‘Together, we aim to pave the way for other housing finance companies and development finance institutions to further the cause,’ stated Monu Ratra, CEO of IIFL HFL to ET.

According to Allen Forlemu, IFC’s Regional Industry Director for Financial Institutions Group, Asia and the Pacific who talked to ET, through this investment, the organization hopes to promote financial inclusion by enhancing low-income women borrowers’ access to capital and fostering the growth of the nation’s emerging green housing market.

With over USD 2.2 billion invested in housing financing businesses and developers in India since 2013, affordable and green housing continues to be a major emphasis area for IFC in that nation.

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