Aadhar Housing Finance Limited (AHFL), backed by private equity giant Blackstone, is poised for a significant leap in growth, with expectations of over 20% growth in its disbursements and order book for the low-income housing sector. The optimism is driven by anticipated government policies supporting the ‘Housing for All’ initiative in the upcoming budget. AHFL’s efforts have primarily focused on affordable housing loans for economically weaker sections (EWS) and low-income groups (LIG). AHFL is urging the government to revise income thresholds to INR 5 lakh for EWS and INR 10 lakh for LIG, to align with contemporary economic conditions.
In FY23, AHFL disbursed INR 6,000 crore, followed by INR 7,100 crore in FY24, marking a strong upward trajectory. Uttar Pradesh remains the company’s largest market, contributing 15% of the overall revenue. The company has also expanded its presence across metro cities like Delhi and Mumbai. Construction costs are rising, resulting in a higher preference for self-construction or resale properties over builder projects. AHFL is looking to tap into newer markets in Northeast India and Jammu & Kashmir, while maintaining its impressive AUM of INR 16,566 crores as of December 2022. With 424 branches across 20 states and union territories, AHFL is a formidable player in India’s low-income housing finance sector.
The sustainability angle in AHFL’s strategy is reflected in its advocacy for reintroducing the Pradhan Mantri Awas Yojana (PMAY) across a broader geographical area, enhanced subsidies under the Credit Linked Subsidy Scheme (CLSS), and revisiting the priority sector lending limits. The company also promotes public-private partnerships to expand affordable housing inventory. These proposals reflect a holistic approach to addressing India’s housing crisis, where sustainable, inclusive growth is at the forefront.
