ABHFL Secures Rs 830 Crore Investment from IFC to Boost Affordable Housing and MSME Growth

The strategic collaboration between Aditya Birla Housing Finance and the International Finance Corporation aims to drive financial inclusion, promote women’s homeownership, and support MSME growth in India.

Aditya Birla Housing Finance Limited (ABHFL), a wholly owned subsidiary of Aditya Birla Capital, has secured an investment of Rs 830 Crore through Non-Convertible Debentures (NCDs) from the International Finance Corporation (IFC), a member of the World Bank Group. This strategic funding will be utilized to bridge critical gaps in the housing finance sector by providing affordable housing loans to low-income and middle-income groups (LIG and MIG), with a particular emphasis on encouraging homeownership among women. Additionally, a portion of the funds will be directed towards supporting Micro, Small, and Medium Enterprises (MSMEs), particularly women-led businesses, to foster growth and economic development.

Strengthening Financial Inclusion and Empowering Women

The investment is designed to support Aditya Birla Housing Finance’s ongoing efforts to improve financial inclusion and contribute to the sustainable development of underserved communities in India. Through this partnership, ABHFL aims to increase access to affordable housing finance for low- and middle-income groups and promote women’s empowerment through homeownership. By focusing on women borrowers, ABHFL seeks to provide financial solutions that will help transform lives and foster economic independence.

A portion of the funds will also target MSMEs, especially those led by women, to provide the necessary financial support for business expansion and job creation, contributing to the country’s economic progress.

Leadership Insight

Pankaj Gadgil, Managing Director & CEO of Aditya Birla Housing Finance Limited, expressed his enthusiasm about the partnership with IFC, stating, “This collaboration with IFC marks a key milestone in advancing financial inclusion and equitable growth. At Aditya Birla Housing Finance, we are committed to delivering inclusive home financing solutions that ensure a truly happy home loan journey. This initiative empowers underserved communities, particularly women borrowers, while supporting MSMEs to foster entrepreneurial growth and economic empowerment. By combining IFC’s global expertise with our vision, we aim to make homeownership accessible, drive progress, and build a sustainable financial ecosystem in India.”

IFC’s Role in Advancing Financial Access

Wendy Werner, Country Head for India and the Maldives at IFC, highlighted the importance of a dynamic housing sector and improved financial access for MSMEs in driving India's sustainable development. “A dynamic housing sector and improved financial access for MSMEs are essential for India's sustainable development. Through our partnership with Aditya Birla Housing Finance, we aim to expand affordable housing finance and enable more women to become business owners. The private sector is crucial in driving the growth of housing and MSME sectors, and our collaboration with leading players focuses on enhancing financing opportunities for women in the wider financial ecosystem—key to fostering long-term progress and advancing economic inclusion,” said Werner.

Commitment to Transformative Financial Solutions

Aditya Birla Housing Finance is committed to creating transformative solutions that not only address current challenges in the housing and MSME sectors but also pave the way for a more equitable and sustainable financial ecosystem in the country. This collaboration with IFC will significantly enhance the availability of financing for underserved communities, contribute to the growth of MSMEs, and improve access to homeownership for women, creating a positive social and economic impact across India.