U.S. International Development Finance Corporation (DFC) provides USD 50 mn loan to IIFL Home Finance Limited (IIFL HFL) for financing affordable home loans

Gurugram, 17th July 2023 - IIFL Home Finance Ltd., one of India’s fastest growing digital first home finance company, an investee of Abu Dhabi Investment Authority (ADIA), secured a loan worth USD 50 mn from U.S. International Development Finance Corporation, an agency of the United States of America. The proceeds of the loan will be used to finance affordable home loans with a special focus on sustainable housing.

IIFL HFL caters to the diverse financial needs of the Economically Weaker Sections (EWS) and Lower Income Groups (LIG) through its wide-reaching pan India distribution network across Tier 1, 2, 3 and 4 cities and towns. As of March 31st, 2023, it has fulfilled the home ownership dream of nearly 1 lakh customers in the informal income segment and has served over 213,700 first time homeowners. Also, IIFL HFL has facilitated subsidy of over Rs. 1,750 cr to more than 73,000 first time homeowners, CLSS-PMAY (U) beneficiaries, aligning with the Government of India’s mission of ‘Housing for All’.

“We are a focused affordable housing finance company with an AUM of Rs. 29,595 cr as of June 30th, 2023. We are happy to receive this facility from DFC which shall further our mission of ‘Housing For All’,” said Monu Ratra, ED and CEO, IIFL HFL.

“DFC is proud to work alongside innovative partners like IIFL Home Finance Ltd to support inclusive lending in India,” said James Polan, Vice President of DFC’s Office of Development Credit. “This transaction will generate enormous benefits for the people of India by expanding access to housing finance and providing financial support for growing small businesses.”

About IIFL HFL

IIFL Home Finance Limited (IIFL HFL) is a subsidiary of IIFL Finance Limited, with 79.59% shareholding, while Abu Dhabi Investment Authority acquired 20.41% stake in the company in 2022. IIFL HFL is one of India’s leading housing finance companies and is a preferred choice for affordable home loan requirements. As of 31st March 2023, the AUM stood at Rs 28,512 cr of which home loan is 76% of the total with an average ticket size of Rs 14 lakh. The Return on Assets (ROA) for the period is at 4.0%. Through affordable home loans, IIFL HFL makes people’s aspirations of owning a home a reality, while emphasizing on supporting green buildings and projects that help society achieve inclusive sustainable development. The objective is to fulfil economic upliftment for EWS/LIG segments of the country. The company has adopted an asset light model by getting into co-lending arrangements that further helps to penetrate and expand in deeper markets of India. To facilitate a seamless customer experience, the entire life cycle of housing loans is technology driven i.e., from origination to closure. The state-of-the-art IT infrastructure helps in reducing costs, real-time analysis of customer data, improving control and underwriting functions, while increasing customer reach and distribution capability.

About DFC

U.S. International Development Finance Corporation (DFC) partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest across sectors including energy, healthcare, infrastructure, food security, and small business support. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.