The Asian Development Bank (ADB) has signed an agreement to lend up to $60 million in Indian rupee equivalent to Aavas Financiers Limited, a housing finance company in India, to improve access to housing finance for lower-income borrowers in the country, particularly women.
“It is very difficult for women in India, particularly in low-income groups, to obtain mortgage loans for their housing needs,” said Senior Investment Specialist at ADB’s Private Sector Operations Department Susan Olsen. “This directly contributes to their low social status, vulnerability to poverty, and low bargaining power within households. ADB’s loan to Aavas will enable more property ownership among women and in lagging states across the country.”
The loan is disbursed under ADB’s Supporting Access to Housing Finance for Women in Lower-Income Groups and in Lagging States Project. Aavas will use the funds to provide housing finance to women in low-income communities either as primary borrowers or co-borrowers.
India is experiencing a severe housing shortage estimated at 18.7 million units in urban areas and 43.7 million units in rural areas, mostly affecting low-income groups. They face several challenges in obtaining mortgages including a lack of documents to prove their incomes.
Original source: ADB
Published on 30 March 2020
