The Asian Development Bank has signed a major financing deal with Aavas Financiers Limited. This partnership aims to expand access to crucial loans across India. The total package is worth up to 108 million dollars in Indian rupee equivalent.
This funding is designed to help lower-income households and small businesses. It will specifically target underserved states throughout the country. The goal is to unlock formal credit for those who need it most.
Senior officials from both organizations attended the signing event. A representative from Global Affairs Canada was also present. This highlights the international support behind this initiative.
A portion of this financing is particularly noteworthy. It includes eight million dollars in concessional debt from a special Canadian fund. This fund focuses on climate and nature projects in Asia’s private sector.
According to the ADB, the money will support two key areas. It will fund housing loans for self-built and green-certified homes. This promotes climate-resilient and energy-efficient solutions for borrowers.
The transaction also includes technical assistance funding. Up to 150,000 dollars will help build institutional capacity. It will also boost market awareness for green housing solutions.
ADB’s Country Director for India, Mio Oka, emphasized the project’s goals. The support will accelerate the shift toward climate-aligned and gender-responsive finance. It focuses on inclusive growth and building resilience in lagging states.
The allocation of funds follows a specific structure. At least seventy percent will support housing loans for lower-income borrowers. Half of these housing loans are earmarked for women property owners.
The remaining thirty percent of the financing has another purpose. It will be onlent to micro, small, and medium-sized enterprises. This portion aims to spur entrepreneurship and create new jobs.
Sachinder Bhinder, Managing Director of Aavas, expressed pride in the deepened partnership. He stated this funding aligns perfectly with their portfolio and geographic focus. It will help scale affordable housing and expand MSME lending.
Aavas is a leading affordable housing finance company in India. It has a strong presence in semi-urban and semi-rural areas. This new financing builds on previous ADB support from 2020.
The initiative aligns with India’s national priorities. It supports the government’s ‘Housing for All’ goal. It also contributes to broader MSME development across the country.
The Canadian Climate and Nature Fund for the Private Sector in Asia is a key player. Known as CANPA, it was established in 2024 and is managed by ADB. The Government of Canada has committed 360 million Canadian dollars to it.
This fund builds on the success of two previous Canadian climate funds. CANPA aims to support private-sector projects with a focus on climate and nature. It also actively promotes gender equality in its investments.
This partnership represents a significant step for financial inclusion. It combines affordable housing support with business lending for small enterprises. The focus on green solutions and women borrowers makes it a multifaceted project.