IFC fires funds in affordable housing

In order to extend housing loans to low-income consumers in rural and semi-urban areas across the country, the International Finance Corporation (IFC), a World Bank Group member, has recently invested Rs.130 crore in Jaipur-based affordable home loan firm Aavas Financiers. With the available funds, Aavas will expand its reach to un-served and undeserved low-income borrowers in Rajasthan, Madhya Pradesh, Maharashtra, Gujarat and Delhi-NCR. This new investment by IFC in Aavas is one of a series of investments and advisory engagements that IFC has conducted recently in the affordable housing space, aiming to generate strong market momentum contributing to the full realization of the national goal of Housing for All by 2022, said India Country Head, IFC, Jun Zhang. IFC finances the developers to construct affordable (and green) residential housing stock, and supports housing finance companies through investments and advisory engagements. It has invested close to $300 million in six housing finance companies and one mortgage guarantee company in the affordable housing finance space in India since 2010, he said.