Asian Development Bank (ADB) and IIFL Home Finance Limited (IIFL), an Indian housing finance company, have signed a $68 million loan to improve financial access for lower-income women borrowers in India to affordable green housing.

The funding comprises a direct ADB loan of up to $58 million and a $10 million concessional loan by the Canadian Climate Fund for the Private Sector in Asia (CFPS). From ADB’s loan, 80 percent will be earmarked for lending to women borrowers or co-borrowers and 20 percent allocated to financing mortgages for green-certified homes. The CFPS loan will support IIFL’s green housing portfolio, specifically towards incentivizing developers to adopt green certification standards in building affordable housing,” according to an ADB note here.

“By leveraging IIFL’s focus on financial inclusion and CPFS’ leadership on climate-resilient housing, ADB can help low-income communities to manage the impacts of climate change,” said ADB Director General for Private Sector Operations Suzanne Gaboury. “We are pleased to support IIFL in demonstrating to the construction industry that you can build both affordable and green-certified housing for low-income households,” Gaboury said.

Women often find it difficult to obtain mortgage loans in India. A 2017 study showed that only 5 percent of women have borrowed from a formal financial institution and only 3 percent have an outstanding housing loan. Lack of property ownership contributes to the low social status of women, their vulnerability to poverty, and low bargaining power within households, the ADB pointed out.

“Funding from ADB will help us to improve the penetration of green affordable housing in deeper markets of India and fulfill the dreams of many Indian families to own their own homes. We are glad to be partnering with ADB in our growth journey,” said IIFL CEO and Executive Director Monu Ratra.

ADB note stated that green-certified buildings can be more expensive to build, which has limited their uptake among homebuyers and developers in India. The market is also constrained by a lack of awareness that building green homes can result in long-term savings of up to 35 percent, and are less vulnerable to climate-related risks.

IIFL, a leading housing finance company in India with more than 207 billion rupees in assets and 125 branches across 18 states and with a focus on India’s lower-income groups and economically weaker sections, can service almost all of its customers digitally, the ADB further stated.