IIFL Home Finance Limited
Status: Proposed investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
In case of questions
We welcome feedback on this proposed investment opportunity for FMO. The ending of the proposed investment phase is indicated on the right side of this page. In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our prospective customer?
IIFL Home Finance Limited (“IIFL HFL”) is a licensed non-bank financial institution (NBFC) and one of the leading affordable housing finance companies (HFCs) in India. It primarily focuses on providing affordable housing finance to first-time buyers among the Low Income Group (LIG) and Economically Weaker Section (EWS) households. The company was incorporated in 2006 as a subsidiary of its parent company, IIFL Finance Limited, and began its operations in 2009 after receiving a registration certificate from the National Housing Bank.
What is our funding objective?
FMO will provide a USD 50 million senior secured loan as part of a USD 300 million syndicated facility led by the Asian Development Bank (ADB). FMO will participate in the DFI lender tranche, with the transaction structured as an External Commercial Borrowing (ECB) with a tenor of 8 years. The proceeds will support IIFL HFL’s expansion in affordable housing, specifically targeting women borrowers and green-certified affordable housing projects.
Why do we want to fund this investment?
The transaction strongly aligns with SDG 10 by targeting low-income and economically weaker segments, including informal-income borrowers typically excluded from formal credit. It also supports SDG 5 by prioritizing female borrowers in a market where women represent only 13% of primary home-owners, and supports SDG 13 through green-certified housing loans under IIFL HFL’s Sustainability Finance Framework, qualifying the investment for a 100% Reducing Inequalities (RI) label and a 25% Green label.
What is the Environmental and Social categorization rationale?
The investment has been categorized as E&S Category C following FMO’s Sustainability Policy. In the case of NBFC investments, the environmental and social (E&S) risk classification is typically medium to low because the exposure is generally limited to retail and micro-borrowers, and there is no exposure to activities on FMO’s exclusion list or that trigger any of the IFC Performance Standards (PSs).
- Website customer/investment
- https://www.iiflhomeloans.com
- Region
- Asia
- Country
- India
- Sector
- Financial Institutions
- Publication date
- 10/16/2025
- Deadline for feedback
- 11/15/2025
- Total FMO financing
- USD 50.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - C