On September 10, the Japan International Cooperation Agency (JICA) signed a loan agreement with IIFL Home Finance Limited (hereinafter “IIHFL”), a housing finance company in the Republic of India (hereinafter “India”).
This project is being implemented through a syndicated loan arranged by the Asian Development Bank (ADB) and private financial institutions, including Mitsubishi UFJ Bank, Ltd. By providing housing acquisition funds to economically disadvantaged and low-income women in India, the project is expected to contribute to improving women’s access to housing finance, raising their standard of living, and promoting their economic independence.
Scenes from the Signing Ceremony
India has the world’s largest population and is one of the countries experiencing rapid urbanization. While housing demand is expanding rapidly alongside the growth of the urban population, there is a shortage of more than 10 million housing units in urban areas, and it is estimated that more than 22 million additional housing units will be needed by 2030. Approximately 95 percent of the housing shortage is for low-income households, making the housing issue one of the country’s most critical socioeconomic challenges. Furthermore, women account for only about 30 percent of housing finance users in India; within a male-dominated social structure, promoting home ownership among women and supporting their economic independence has become a key challenge.
Against this backdrop, the Indian government has adopted the slogan “Housing for All” and is promoting housing acquisition support for low-income urban residents as a key policy priority. This project contributes to addressing these policy challenges.
Furthermore, JICA, in collaboration with the Japan Housing Finance Agency and other organizations, plans to conduct training sessions for officials from India’s housing finance regulatory authorities and the IIHFL on Japan’s housing policies, including the decarbonization of buildings and “affordable housing.” The Japan Housing Finance Agency is working to support the establishment and expansion of housing finance systems in emerging economies and other countries, and to create a housing market environment that facilitates the entry of Japanese businesses. This project aligns with these efforts and aims to contribute to the development of India’s housing finance market by leveraging Japan’s expertise in housing finance and housing policy.
JICA will continue to collaborate with development finance institutions, private financial institutions, and various domestic and international stakeholders to support women’s economic empowerment and financial inclusion—including the development of an inclusive housing market—while contributing to the global dissemination of Japan’s expertise and technology.
・Borrowers
IIFL Home Finance Limited (IIHFL)
・Country (Target Region)
Republic of India
・Loan Amount (Maximum)
150 million U.S. dollars
・Project Name
Housing Access Support Program for Low-Income Women
・Business Objectives
This project aims to improve access to housing finance for low-income women in India by providing a long-term loan to IIHFL, which focuses on providing home purchase loans to low-income women in that country, thereby contributing to the improvement of their standard of living and the promotion of their economic independence.
・Business Overview
The financing for this project (the JICA portion) will be on-lent through IIHFL to provide home purchase funds for low-income women in India.
・Contributing to the SDGs
Goal 1 (End Poverty)
Goal 5 (Achieve Gender Equality)
Goal 11 (Sustainable Cities and Communities)
・Other
The “G7 2X Challenge: Finance for Women” initiative is a program in which development finance institutions from G7 countries, including JICA, use their own funding as a catalyst to promote the economic empowerment of women—such as by fostering female entrepreneurs and business leaders and facilitating their entry into the labor market. IIHFL is actively engaged in providing housing finance to low-income women in India, and since the entire amount of the JICA loan will be used to support this sector, this project contributes to the 2X Challenge initiative.
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