The Japan International Cooperation Agency (JICA) has signed a loan agreement with IIFL Home Finance (IIHFL), committing US$150 mn to expand affordable housing finance for women from Economically Weaker Sections and Low-Income Groups in India. The project is intended to improve living standards, financial inclusion and women’s economic empowerment.

The financing will be implemented through a co-financing arrangement involving the Asian Development Bank and private financial institutions, including MUFG Bank. It will provide long-term funding for home acquisition by low-income women, supporting the Government of India’s Housing for All initiative and its focus on urban households.

India’s rapid urbanisation has increased demand for housing, while the country faces an urban housing shortage of more than 10 mn units. Housing demand is projected to rise by a further 22 mn units by 2030, and about 95 per cent of the existing shortage is concentrated among low-income households, making affordable housing a significant socio-economic priority.

Women currently account for only about 30 per cent of housing finance users in India, highlighting limited access to formal lending and homeownership opportunities. The JICA-supported initiative will seek to widen access by directing financing towards women borrowers in the EWS and LIG categories.

JICA, in collaboration with the Japan Housing Finance Agency and other partners, also plans to provide training for Indian housing finance regulators and IIHFL staff. The programme will cover Japanese experience in housing policy, affordable housing and decarbonised building practices, while sharing expertise on developing housing finance systems and encouraging private-sector participation. The partnership is intended to support the broader development of India’s housing finance market through knowledge exchange and increased lending access.