ADB and Vastu Housing Finance Collaborate to Enhance Sustainable Housing in India

The Asian Development Bank (ADB) has granted approval to provide a senior secured loan up to the worth of $70 million towards the Vastu Housing Finance Corporation Limited, popularly known as Vastu. This collaboration intends to enhance the availability of housing loans to the unprivileged groups across India. The amounts target economically weaker sections, low-income group's particularly women, and First Home Buy-in customers. It helps bridge the housing void that exists in India

India has a massive housing shortage, requiring 45 million homes for the EWS and 50 million homes for the LIG population. High mortgage rates and short credit histories render it difficult for these families to access credit and ultimately secure homeownership. To solve that, the ADB-Vastu partnership will provide housing finance for currently underserved borrowers in the rural and semi-urban zones.

Suzanne Gaboury, Director General of ADB’s Private Sector Operations Department, said, "ADB aims to address the critical housing shortage in India while promoting environmentally friendly housing that enhances climate resilience for homeowners by focusing on lower-income households and sustainable housing."

She added, "This partnership with Vastu illustrates ADB's commitment to supporting financial inclusion and sustainable development in India, in alignment with the country’s national financial inclusion strategy."

ADB and Australian Partners Invest $10 Million to Promote Sustainable Transport in Indonesia

Increasing affordable housing access

Vastu Housing Finance is a technologically-enabled affordable housing finance company that commands market presence in the semi-urban and rural markets. It lends to self-employed people and underprivileged sections of society, which consist of a growing middle class as well as low-income families.

Focus on Sustainability and Inclusion

This partnership also focuses on sustainable housing, increasing climate resilience and supporting broader sustainable development goals in India. This initiative aims at empowering the marginalized communities and increasing their financial access through Vastu and ADB.