ADB Partners with Aavas Financiers to Expand Affordable Housing, MSME Lending in IndiaIn February 2026, the Asian Development Bank (ADB) signed a senior secured debt financing package of up to USD 108 million (Mn) (about Rs 983 crore (Cr)) with Aavas Financiers Limited to expand affordable housing and Micro, Small and Medium Enterprises (MSME) lending in India.
Purpose: Apart from providing business loans for MSMEs in underserved states across India, the financing will support housing loans for self-built and green-certified homes, promoting climate-resilient and energy-efficient housing solutions for lower-middle-income borrowers.
Capacity Support: The package includes concessional debt financing of USD 8 Mn through the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA), Asian Development Bank (ADB).

• The transaction also includes up to USD 150,000 in technical assistance to strengthen capacity and promote green housing awareness.