ADB, Aavas Financiers Ink USD 108 Mn Deal To Support Affordable Housing & MSME Lending

New Delhi, Feb 24 (KNN) The Asian Development Bank (ADB) has signed a senior secured debt financing package of up to USD 108 million with Aavas Financiers Ltd to expand affordable housing loans and support micro, small and medium-sized enterprises (MSMEs) in underserved Indian states.

The package includes USD 8 million in concessional financing from the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA), a trust fund managed by ADB and backed by the Government of Canada, reported ANI.

Focus on Green and Inclusive Housing

According to ADB, at least 70 per cent of the financing will be used for housing loans targeting lower-income borrowers, including self-built and green-certified homes. Of these, 50 per cent will be extended to women property owners as sole or joint owners.

The remaining 30 per cent will be onlent to MSMEs to support entrepreneurship and job creation.

ADB Country Director for India Mio Oka said, "ADB's support will unlock formal credit for underserved lower-income families and entrepreneurs while accelerating the shift toward climate-aligned and gender-responsive housing finance."

"By focusing deployment in lagging states and prioritising women property owners, the project advances inclusive growth and resilience," Oka added.

The transaction is also supported by up to USD 150,000 in technical assistance to strengthen institutional capacity and promote awareness of green housing.

(KNN Bureau)