IIFL Home Finance to get $68 million ADB loans
The funding comprises a direct ADB loan of $58 million and another $10 million concessional loan from the Canadian Climate Fund. The Canadian fund will also be routed through ADB.
The size of the loan in local currency is Rs 508 crore.
This is IIFL Home Finance’s maiden loan from ADB or any other development finance institution, managing director Monu Ratra told ET.
The blended cost of the fund comes around 8.1% a year, he said.
‘Funding from ADB will help us improve the penetration of green affordable housing in deeper markets of India and fulfil the dreams of many Indian families to own their own homes,’
The loan will be split into two tranches, an ADB spokesperson said, responding to ET’s queries. Of this, Rs 433 crore is earmarked for lending to women borrowers or co-borrowers from low income groups with special thrust to lagging states in India, and for mortgages on green certified affordable housing units.
The balance Rs 75 crore is for lending to developers for the construction of green certified affordable housing units, the spokesperson said. This is expected to incentivize developers to adopt green certification standards in building affordable housing.
ADB already has an existing tie-up with IIFL Home Finance to promote green housing initiatives in India aiming to reduce carbon emissions and conserve water and energy.
Buildings contribute around 35% of carbon emissions and with the vast majority of housing stock yet to be built in India. Home units can be designed conforming to climate requirements and improve carbon efficiency.
IIFL Home Finance provides affordable home loans to economically weaker sections, low income group (LIG) and middle income group (MIG), in line with the government’s ‘Housing for All’ endeavor.
The lender had an asset under management of Rs 22207 crore at the end of December last year with three-fourth of it being home loans with average ticket size of Rs 17 lakh. It aims to grow its book to Rs 30,000 crore by March 2023, Ratra said.
(News Source -Except for the headline, this story has not been edited by Times Of Nation staff and is published from a economictimes.indiatimes.com feed.)
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