IFC To Pour ₹300 Crore In Grihum Housing's RMBS, Boosting Affordable Home Loans
The International Finance Corporation (IFC) has announced its first investment in India’s residential mortgage-backed securities (RMBS). The move aims to increase home ownership for low- and middle-income families across the country. Up to ₹300 crore (around USD 30 million) will be injected into RMBS issued by Grihum Housing Finance.
This investment marks a significant step in developing India’s RMBS market. The funds will help Grihum Housing Finance provide more affordable mortgage loans, aligning with the government’s Pradhan Mantri Awas Yojana initiative. The RMBS issuance uses a replenishing structure, turning irregular loan repayments into a steadier income stream for investors.
IFC is working with developers and banks to expand access to housing credit. By supporting RMBS instruments, the organisation hopes to attract private capital into affordable mortgage lending. These securities allow housing finance firms to secure long-term funding at competitive rates, reducing costs for homebuyers. Grihum Housing Finance CEO Arjun Chowdhry welcomed the partnership, stating it strengthens their joint goal of making home ownership more accessible. The collaboration follows IFC’s earlier involvement in India’s RMBS sector, when it co-invested with HDFC and Grihum in December 2017.
The investment is expected to widen investor participation in India’s mortgage market. By improving funding options for lenders, it could lower borrowing costs for families seeking affordable homes. The initiative also supports the broader push to expand home ownership under national housing schemes.
