International Finance Corporation (IFC), one of the World Bank Group Member International members has signed an agreement with Aavas Financiers Ltd and Aavas Foundation to boost opportunities in the green housing business and scaling green housing finance in India. International Finance Corporation has invested $20 million in Aavas Financier Ltd to extend housing loans to the low-income consumer in semi-urban and rural areas who have less access to mortgage finance.
Aavas Financiers Ltd was incorporated as a private limited company at Jaipur, Rajasthan. It formally started its business operations in March 2012. It’s a retail and affordable housing finance company. International Finance Corporation has said that the project is intended to improve access to affordable green housing for low-income borrowers who have no access to finance and this move is expected to aid the environment for green buildings and lead to the government of India’s national Housing for All program. The Green home project aims to build a house that is designed to be environmentally sustainable and focuses on efficient use of energy, water, and building materials.
Jun Zhang, Country Head–India at IFC, said that the company aims to increase the scale of green construction and mortgage finance, especially in the low-income state of India by helping Aavas to develop strategy and business plan to effectively target the lower-income segment, including women borrowers through this project.
The International Finance Corporation project is also being supported by the United Kingdom-IFC market accelerator for the green construction program, a partnership between IFC and the Government of the United Kingdom. International Finance Corporation has said that with this project around 600 million Indians are expected to live in urban areas by 2030 according to the United Nations. More than 20 percent of energy and water consumption can be saved by Green Buildings compared to typical buildings and an average of 15-20 percent on utility bills.
Green Home development will further help to create impact by allowing financial institutions in other emerging markets to develop customized, strategic responses to promote affordable green housing in their countries. This project aims to protect the environment by reducing the consumption of energy, water, and providing for a Better Tomorrow.
