ADB–Aavas Tie-Up: Affordable Housing & MSME Boost

Current Context: On 24 Feb 2026, the Asian Development Bank (ADB) signed a $108M (≈ ₹983 cr) senior secured debt package with Aavas Financiers Ltd., backed by Global Affairs Canada.

• Purpose: To bridge credit gaps in India’s underserved regions, targeting borrowers often ignored by big banks—like self-employed rural workers and low-income households.
• Affordable Housing (70%): Majority of funds directed to Economically Weaker Sections (EWS) and Low-Income Groups (LIG) for housing loans, ensuring access to safe and durable homes.
• MSME Lending (30%): Dedicated share for micro, small, and medium enterprises, aiming to create jobs, spur entrepreneurship, and strengthen local economies.
• Green Bonus ($8M): Concessional financing from CANPA (Canadian Climate & Nature Fund for Asia) reserved for green-certified and self-built homes, promoting climate-resilient housing solutions.
• Significance: Enhances financial inclusion, supports MSME growth, advances India’s climate goals, and signals global confidence in “ignored” borrowers as viable investments.

Question:

Q.1 The Asian Development Bank (ADB) signed a senior secured debt package of how much with Aavas Financiers Ltd.?
a) $108 million
b) $100 million
c) $105 million
d) $120 million

Answer: a) ADB signed a $108 million senior secured debt package (approximately ₹983 crore) with Aavas Financiers Ltd.