2026.09.24
On September 10, the Japan International Cooperation Agency (JICA) signed a loan agreement with IIFL Home Finance Limited (IIHFL), a housing finance company in the Republic of India.
The project will be implemented through a co-financing arrangement with the Asian Development Bank (ADB) and private financial institutions including MUFG Bank, Ltd. Through the provision of housing finance to women belonging to the Economically Weaker Sections (EWS) and Low-Income Groups (LIG) in India, the project aims to improve women’s access to housing finance, enhance living standards, and promote economic empowerment.
Signing ceremony
India, the world’s most populous country, is experiencing rapid urbanization. While population growth in urban areas is driving a sharp increase in housing demand, the country already faces an urban housing shortage of more than 10 million housing units, and its housing demand is projected to increase by an additional 22 million units by 2030. Approximately 95% of the housing shortage is concentrated in the low-income households, making affordable housing one of the country’s most pressing socio-economic challenges. In addition, women account for only around 30% of housing finance users in India. Promoting homeownership among women and supporting their economic independence remain important challenges in a society where men continue to play a dominant role in economic and social decision-making.
Against this backdrop, the Government of India has been promoting support for home acquisition among low-income urban households as a priority policy under its “Housing for All” initiative. This project will contribute to addressing these policy challenges.
Furthermore, JICA, in collaboration with the Japan Housing Finance Agency (JHF) and other partners, plans to provide training for officials of India’s housing finance regulators and IIHFL staff on Japanese housing policies, including decarbonized building practices and affordable housing. JHF has been supporting the development and expansion of housing finance systems in emerging economies while promoting the creation of housing market environments that facilitate the participation of Japanese companies. In line with these efforts, the project is expected to contribute to the development of India’s housing finance market by leveraging Japanese knowledge and experience in housing finance and policy.
JICA will continue to work with development finance institutions, private financial institutions, and diverse stakeholders in Japan and abroad to cooperate in the development of inclusive housing markets, promote women’s economic empowerment, and foster financial inclusion, while contributing to the international dissemination of Japanese knowledge, expertise, and technology.
The project outline is explained below.
- Borrower
IIFL Home Finance Limited (IIHFL)
- Country (Target Areas)
Republic of India
- Commitment Amount
150 million USD
- Project Title
Project for Promoting Affordable Housing Finance for Low-Income Women in India
- Project Purpose
The Project aims to improve access to housing finance for low-income women in India by providing long-term financing to IIHFL, which specializes in housing finance for low-income women borrowers, thereby contributing to improved living standards and the promotion of economic empowerment of women.
- Project Component
The proceeds of the JICA loan will be on-lent through IIHFL to finance home acquisition for low-income women in India.
- Contribution to SDGs
Goal 1（No poverty）
Goal 5（Gender equality）
Goal 11（Sustainable cities and communities）
- Reference
JICA and other G7 development finance institutions participate in the “G7 2X Challenge: Financing for Women” initiative, which aims to leverage funding to promote women’s economic empowerment through entrepreneurship, leadership development, and labor market participation.
IIHFL is actively engaged in providing financing for home acquisition to low-income women in India. Given that the entire proceeds of the JICA loan will be utilized to support this segment, the Project contributes to the objectives of the 2X Challenge initiative.
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