The Asian Development Bank (ADB) has signed an agreement to lend up to $60 million to Aavas Financiers Ltd , a housing finance company in India, to improve access to housing finance for lower-income borrowers, particularly women.

“It is very difficult for women in India, particularly in low-income groups, to obtain mortgage loans for their housing needs,” said Senior Investment Specialist at ADB’s Private Sector Operations Department Susan Olsen, in a statement issued on Monday. “This directly contributes to their low social status, vulnerability to poverty, and low bargaining power within households. ADB’s loan to Aavas will enable more property ownership among women and in lagging states across the country.”

Aavas is one of the largest housing finance companies in India’s affordable housing segment and it has more than ₹70 billion in assets under management and 245 branches across 10 states.

According to Sushil Kumar Agarwal, Managing Director and CEO of Aavas, ADB funding will help the firm further deepen its presence in States that lag behind.

Aavas will use the funds to provide housing finance to women in low-income communities either as primary borrowers or co-borrowers.

India is experiencing a severe housing shortage estimated at 18.7 million units in urban areas and 43.7 million units in rural areas, mostly affecting low-income groups. They face several challenges in obtaining mortgages including a lack of documents to prove their incomes.

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