ADB Partners with Aadhar Housing Finance to Boost Women-Centric Housing Loans in India

"Companies such as AHFL play a crucial role in providing financial solutions that cater to the unique circumstances of low-income families," Gaboury stated.

The Asian Development Bank (ADB) has entered into a $60 million financing agreement with Aadhar Housing Finance Limited (AHFL) to bolster housing loans targeted exclusively at women borrowers in India's low-income and affordable housing sectors. Currently, $30 million of the total amount has been disbursed.

The funding from ADB will enable AHFL to expand its lending capacity specifically to women borrowers or co-borrowers, with at least half of the financing earmarked for states including Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan, Uttar Pradesh, and West Bengal.

Suzanne Gaboury, ADB's Director General for Private Sector Operations, highlighted the challenges faced by poor households in accessing formal bank loans for housing, often resorting to savings, borrowing from informal sources, or facing high-interest rates from moneylenders. She emphasized the importance of AHFL's tailored financial products in meeting the needs of these underserved communities.

"Companies such as AHFL play a crucial role in providing financial solutions that cater to the unique circumstances of low-income families," Gaboury stated. "ADB's support will enhance AHFL's ability to reach more families aspiring to own a home."

India currently faces a significant housing deficit, estimated at 26.3 million homes in urban areas and nearly double that in rural regions. Mortgage lending remains limited, particularly for individuals with informal employment and lower-income groups.

Rishi Anand, CEO of AHFL, expressed the company's commitment to expanding financial inclusion by focusing on the low-income housing market. "Our partnership with ADB marks a significant step towards creating a robust ecosystem of affordable, self-owned homes, thereby fulfilling the aspirations of economically weaker sections of society," Anand remarked.

AHFL specializes in the low-income housing segment, with an average loan size of 900,000 Indian rupees (approximately $10,875), targeting economically disadvantaged borrowers. The company operates through a network of 471 branches across 20 states and union territories in India as of September 2023.