IIFL Home Finance Secures $150M JICA Loan for Women's Housing
IIFL Home Finance signs a $150 million loan with JICA to boost affordable housing finance for low-income women across India.
In a significant move to bolster financial inclusion, IIFL Home Finance Limited (IIFL HFL) has entered into a US$150 million loan agreement with the Japan International Cooperation Agency (JICA). This strategic funding is specifically designed to expand affordable housing finance for women in India, particularly targeting those from underserved segments.
Empowering Low-Income Women Through Homeownership
The massive capital injection aims to provide homeownership opportunities to women belonging to the Economically Weaker Sections (EWS) and Low-Income Groups (LIG). By facilitating access to credit, the initiative seeks to improve living standards and promote economic empowerment for women across urban and peri-urban regions of India.
This project is part of a broader co-financing arrangement that includes the Asian Development Bank (ADB) and private financial institutions like MUFG Bank, Ltd. The funds will be on-lent by IIFL HFL to help low-income women acquire their own homes, bridging the gap in the current housing market.
Addressing India's Urban Housing Gap
India is currently grappling with a massive housing shortage due to rapid urbanization. Current estimates indicate a deficit of over 10 million housing units, a number expected to rise by an additional 22 million units by the year 2030. Despite the need, women currently represent only about 30% of housing finance users in the country.
By targeting women borrowers, this initiative aligns with the Government of India’s “Housing for All” vision. Increasing female participation in housing finance is seen as a vital step toward enhancing household financial security and driving inclusive economic growth.
Knowledge Sharing and Sustainable Practices
Beyond the financial aspect, the partnership includes a significant knowledge-sharing component. JICA, working alongside the Japan Housing Finance Agency (JHF), will provide specialized training to Indian housing finance regulators and IIFL HFL employees. This training will focus on:
- Japanese housing policies and practices
- Decarbonized building practices
- Affordable housing development models
This collaboration is expected to strengthen India's institutional capacity and encourage the adoption of sustainable, climate-resilient practices within the affordable housing sector.
“Homeownership can play a critical role in strengthening financial security, improving living standards and enabling greater economic independence for women,” said Mr. Girish Kousgi, MD and CEO of IIFL Home Finance, highlighting the transformative potential of this partnership.