Early Warning System

Regions

South Asia

Geographic location where the impacts of the investment may be experienced.

Countries

India

Geographic location where the impacts of the investment may be experienced.

Financial Institutions

Asian Development Bank (ADB)

International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.

Project Status

Approved

Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.

Bank Risk Rating

Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."

Voting Date

Nov 19, 2025

Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.

Borrower

Aavas Financiers Limited

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

Construction
Finance
Industry and Trade

The service or industry focus of the investment. A project can have several sectors.

Investment Type(s)

Loan

The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.

Investment Amount (USD)

$ 108.00 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Project Cost (USD)

$ 120.00 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Bank Documents

Aavas Financiers Expanding Access to Finance for Lower-Income Housing and Micro, Small, and Medium-S

Primary Source

Original disclosure @ ADB website

Updated in EWS Feb 1, 2026

Disclosed by Bank Nov 19, 2025

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Project Description

If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, ADB will provide long-term senior secured debt financing to Aavas Financiers Limited to support (i) housing loans for economically weaker section (EWS) and low-income group (LIG) borrowers, with a target for women property owners, and (ii) business loans for micro, small, and medium-sized enterprises (MSMEs).

ADB’s debt proceeds will be fully deployed in lagging states, with the following targets:
(i) 70% of the proceeds will be onlent for housing loans to borrowers in the economically weaker section (EWS) and low-income group (LIG) categories, collectively referred to as lower-income groups or lower-income borrowers. At least 50% of such loans will be provided to women property owners, who are either sole or joint owners of the property.
(ii) 30% of the proceeds will be onlent to micro, small, and medium-sized enterprises (MSMEs).

Early Warning System Project Analysis

For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

Environment: FI-C
Involuntary Resettlement: FI-C
Indigenous Peoples: FI-C

Due to the nature and size of potential sub-loans, minimal or no adverse environmental impacts are anticipated.

Investment Description

Here you can find a list of individual development financial institutions that finance the project.

Asian Development Bank (ADB)

- A senior secured debt financing of $100,000,000 (equivalent in Indian rupees) to the Client.
- A senior secured debt financing of $8,000,000 (equivalent in Indian rupees) by the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA), administrated by the Asian Development Bank (ADB).
Government Resources: $12,000,000
Total Sources: $120,000,000

Financial Intermediary

A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.

AAVAS Financiers Limited (Financial Intermediary)

Private Actors Description

A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Aavas Financiers Limited - AFL is a leading affordable housing finance company (AHFC) in India, operating in 14 states through 397 branches, predominantly in semi-urban and rural areas. AFL is an existing ADB client.

Contact Information

This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

No contacts available at the time of disclosure.

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.adb.org/forms/request-information-form

ADB has a two-stage appeals process for requesters who believe that ADB has denied their request for information in violation of its Access to Information Policy. You can learn more about filing an appeal at: https://www.adb.org/site/disclosure/appeals

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main.