IIFL Home Finance Ltd (IIFL HFL) has funded almost Rs 400 to Rs 500 crore to promote green affordable housing projects in India.
IIFL HFL Executive Director and CEO Monu Ratra told the media that so far, it has provided project finance of Rs 20 to Rs 25 crore individually to 18-20 developers across the country. He said that the firm has given a budget of around Rs 60 to Rs 70 crore to three green affordable housing projects in Hyderabad alone. The company owes affordable housing customers more, above just financial aid to provide them habitations that are sustainable and ecologically more beneficial. The company is developing awareness to spark a sustainable housing revolution. Recently, IIFL HFL has inked a Rs 528-crore loan deal with Asian Development Bank (ADB) to enhance funding to small-scale builders and lower-income individuals for affordable green housing projects. Out of the total loan, 80% is earmarked for lending to women borrowers and 20% is allotted to financing mortgages for green-certified homes. In partnership with the ADB, IIFL HFL has conceptualised Kutumb as a knowledge ecosystem for a better knowledge of green design, rating, and financing options. Recognising the urgent requirement for green affordable housing, it hosts Kutumb events all over the country to extend awareness about building climate-resilient houses to preserve cost and energy. Since 2018, the firm has organised 10 Kutumb events in various cities. It wants to produce awareness among local developers on different aspects of green affordable housing including technical know-how and certification process via these programmes. It has inked a memorandum of understanding (MoU) with 16-18 architects and civil engineers to work as in-house 'green value partners'. These green value associates cover the whole life cycle of the green affordable housing projects. They also clear the myths about sustainable housing. To create green homes, there is no requirement for any high-end specifications. Only an extra 2%-4% of the overall cost of construction is needed to make it a sustainable project, Monu Ratra said. Many people consider that IIFL HFL provides finance only for new housing projects, but the company also gives a budget for the up-gradation of homes. Probably, it is the only organisation that pays loans to non-salaried individuals who do not have a fixed income source. Almost 80%-90% of our customers are first-time homebuyers, he said. IIFL HFL has also partnered with four banks – State Bank of India (SBI), Central Bank of India, Union Bank of India (UBI), and Punjab National Bank (PNB) to provide affordable credit to home buyers under the co-lending model. Under this agreement, IIFL HFL handles home loan sourcing, servicing, and 20% of the loan, while the respective bank gives the rest of the loan amount. Image Source
