The Asian Infrastructure Investment Bank (AIIB) is investing Rs 830 million in IIFL Home Finance Ltd (IIFLHF) to expand affordable housing access for low-income families and promote green building practices in India. This marks AIIB’s first collaboration with IIFLHF and highlights the bank’s growing engagement with Indian non-banking financial companies.

The funding targets economically weaker sections (EWS) and low-income groups (LIG), aligning with India’s climate goals under the Paris Agreement and supporting government schemes such as Pradhan Mantri Awas Yojana – Urban 2.0. It also fits AIIB’s Sustainable Cities Strategy, combining social equity with environmental responsibility.

Gregory Liu, Director General, AIIB Financial Institutions and Funds Clients Department, said the investment underscores AIIB’s commitment to inclusive, sustainable infrastructure and bridging India’s housing deficit while furthering its green building agenda.

Many urban low-income families in India continue to struggle for affordable housing, often living in informal settlements. At the same time, developers face difficulties in securing finance for budget housing due to high land and construction costs.

AIIB’s funding will support both homebuyers and developers. On the demand side, IIFLHF will provide home loans for families to purchase or build houses. On the supply side, it will finance affordable housing projects, enabling wider reach and impact.

Monu Ratra, Executive Director and CEO of IIFLHF, welcomed the investment, stating it will “advance homeownership for EWS and LIG families” and boost green, affordable housing that promotes sustainable and resilient communities.