The Asian Infrastructure Investment Bank (AIIB) is putting $100 million into IIFL Home Finance Limited to help more low-income families in India get access to affordable housing, according to a press release. The funding targets economically weaker sections and low-income groups, while also pushing for greener building practices that align with India’s climate goals. This marks AIIB’s first partnership with IIFLHF and shows the bank’s growing work with India’s non-banking financial companies.
The funding fits with India’s commitments under the Paris Agreement and backs government programs like the Pradhan Mantri Awas Yojana – Urban 2.0, which aims to tackle urban housing shortages. It also supports AIIB’s Sustainable Cities Strategy and its focus on green infrastructure, combining social impact with environmental goals.
Gregory Liu, Director General of AIIB’s Financial Institutions and Funds Clients Department, said, “This investment reflects AIIB’s commitment to inclusive and sustainable infrastructure. By partnering with IIFLHF, AIIB is helping to advance India’s green building agenda while bridging the housing gap for low-income families in India.”
The funding addresses a real problem—many low-income urban families struggle to find affordable housing and often end up in informal settlements or poor living conditions. Developers also have trouble getting financing for affordable housing projects because of high construction costs and land prices.
AIIB’s money will work on both sides of India’s affordable housing market. On the demand side, it will help IIFLHF give home loans to families so they can buy or build their own homes. On the supply side, it will help IIFLHF finance developers who build affordable housing projects.
IIFLHF’s Executive Director and CEO Monu Ratra said, “The funding from AIIB will enable us to further our commitment to expanding homeownership opportunities for EWS and LIG families across India. It will also strengthen our efforts to enhance the reach and impact of green, affordable housing solutions that promote more sustainable and resilient living environments.”
The partnership opens the door for more deals between AIIB and housing finance institutions to support inclusive and sustainable urban development across India.
