Motilal Oswal Home Finance Limited (MOHFL), the affordable housing finance arm of Motilal Oswal Financial Services, has entered into a USD 100 million debt financing agreement with the Asian Development Bank to accelerate its women-focused affordable housing lending and expand financing for environmentally sustainable residential projects. The funding, raised in rupee-equivalent through non-convertible debentures (NCDs), marks a strategic milestone in the company’s efforts to deepen financial inclusion and promote green building practices in underserved regions of India.
Key Highlights
- MOHFL raises $100 million from ADB to expand women-focused affordable housing lending.
- Funding will support green-certified housing projects across underserved Indian towns and cities.
- ADB partnership strengthens MOHFL’s long-term capital base and inclusive housing mission.
Under the agreement, the majority of the capital will be deployed to extend affordable housing loans to women borrowers, a segment that currently represents only about 13 % of homeowners in India’s housing finance market, according to ADB. In addition, 10 % of the proceeds will be earmarked for financing residential units that meet recognised green building certification standards, supporting environmentally sustainable construction and long-term resilience in housing infrastructure.
This strategic capital infusion underscores strong confidence from a leading global development finance institution in MOHFL’s business model, governance framework, and long-term growth prospects. The company, which focuses on first-time homebuyers in Tier-II, Tier-III and emerging urban markets, currently operates a network of 126 branches across 12 states and reported assets under management (AUM) of ₹5,379 crore as of December 2025. During the first nine months of FY26, MOHFL recorded disbursements of ₹1,303 crore, while maintaining a stable asset quality with a gross NPA of 1.43 %.
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“Funding from ADB marks a significant milestone in our responsible growth journey,” said Sukesh Bhowal, Managing Director and CEO of Motilal Oswal Home Finance Limited. “With the partnership of ADB, we will be able to deepen the penetration of affordable housing finance in underserved and upcoming towns across India, helping low- and middle-income families realise their dream of homeownership. Importantly, this funding also supports the green construction finance initiative. We believe green housing will play a vital role in building resilient communities for the future.”
Bhavin Shah, Chief Financial Officer of MOHFL, highlighted the financial and operational benefits of the deal, noting that long-tenor capital at competitive terms strengthens the company’s funding base, improves cost efficiency and supports better asset-liability matching — a critical factor in the housing finance business. “The financing from ADB significantly enhances the strength and diversity of our funding base,” he said.
From ADB’s perspective, the deal aligns with broader goals to expand access to formal credit for historically underserved groups and promote sustainable development. Isabel Chatterton, Director General of the Private Sector Operations Department at ADB, emphasised that “this long-term financing will help MOHFL broaden access to affordable housing loans for women and support the company’s entry into the green-certified housing segment…strengthening inclusive access to credit while accelerating the adoption of environmentally sustainable housing solutions.”
The funding comes at a time when India’s affordable housing segment continues to grow, with demand bolstered by rising incomes, rapid urbanisation and government initiatives aimed at promoting homeownership. MOHFL’s expanded funding capacity through this ADB partnership is expected to deepen its reach in smaller towns and emerging markets, while also reinforcing its commitment to sustainable and inclusive housing finance solutions.
