Empowering Homeownership and Financial Inclusion in India
Aditya Birla Housing Finance Limited (ABHFL), a subsidiary of Aditya Birla Capital Limited, has successfully raised ₹830 crore through Non-Convertible Debentures (NCDs) from the International Finance Corporation (IFC). This strategic funding aims to expand home financing solutions for low-income and middle-income groups, with a particular focus on promoting homeownership among women and supporting small businesses.
A Growing Force in India’s Housing Finance Sector
ABHFL, a rapidly growing Housing Finance Company (HFC), commenced operations in October 2014 and has since made significant strides in the industry. As of September 30, 2024, it manages assets worth over ₹23,236 crore and operates across 150 branches nationwide. The company holds a strong credit rating of AAA (Stable) from CRISIL, ICRA, and India Ratings, reinforcing its financial stability and credibility.
Strategic Collaboration with IFC
The partnership with IFC represents a major milestone in ABHFL’s commitment to financial inclusion and economic growth. According to Pankaj Gadgil, MD & CEO of Aditya Birla Housing Finance Limited:
“According to Pankaj Gadgil, MD & CEO of ABHFL, “This collaboration with IFC marks a significant milestone in advancing financial inclusion and equitable growth. Our goal is to ensure a seamless and inclusive home loan experience, especially for women and the middle and low income communities.”
By leveraging IFC’s expertise, ABHFL aims to bridge the affordability gap in the housing sector and empower the middle and low income communities. The funding will specifically enhance access to housing finance for women, ensuring their increased participation in homeownership and entrepreneurial ventures.
Boosting MSMEs and Economic Development
The infusion of capital from IFC is not just limited to housing loans but also is aimed to support Micro, Small, and Medium Enterprises (MSMEs), promoting entrepreneurial growth and economic stability. By leveraging IFC’s global expertise, ABHFL is positioned to build a sustainable financial ecosystem in India, strengthening financial accessibility for women borrowers and small businesses.
Wendy Werner, Country Head, India and Maldives, IFC, emphasized the importance of the private sector in shaping India’s economic future. “A dynamic housing sector and improved financial access for MSMEs are crucial for India’s sustainable development. Through our partnership with Aditya Birla Housing Finance, we seek to expand affordable housing finance and enable more women to become business owners. Our collaboration aims to enhance financing opportunities for women, ensuring long-term progress and economic inclusion.”
The Future of Inclusive Home Financing
ABHFL’s ongoing efforts align with the broader goal of bridging critical financial gaps in the housing sector. The latest funding round strengthens its ability to provide homeownership opportunities, for women borrowers and middle and low income borrowers. Also, by supporting MSMEs, the company aims to drive long-term growth, thereby enhancing accessibility to financial services, and foster a more inclusive financial landscape in India.