IFC-Aavas Financiers inks low-cost housing pact

IFC, a member of the World Bank Group, has signed an agreement with Aavas Financiers — a retail affordable housing finance company — and Aavas Foundation to help improve access to affordable green housing for low-income borrowers. The project is being supported by the UK-IFC Market Accelerator for Green Construction (MAGC) Program, a partnership between IFC and the Government of the United Kingdom, which aims to catalyze financing for certified green construction and green mortgages to mobilize investments that help tackle climate change. Sushil Kumar Agarwal, CEO and MD of Aavas Financiers, informed that this program will help banks, financial institutions, and all other stockholders to promote Green Building initiatives of IFC. About 600 million Indians are expected to live in urban areas by 2030 according to the United Nations. Women comprise 70% of the internal migration (2011 Census of India). Green buildings can save more than 20% on energy and water consumption compared to typical buildings, saving homeowners an average of 15-20% on utility bills. In India, IFC estimates a residential green housing investment opportunity worth $1.25 trillion from 2018 to 2030.