Aadhar Housing Finance is strengthening its co-lending partnerships with public sector banks and fintechs to deepen its penetration into India’s semi-urban and rural housing markets, leveraging new RBI regulations and increasing demand for affordable housing.
Aadhar Housing Finance Ltd is stepping up its use of co-lending as it looks to deepen its reach in India’s affordable housing market. The company is building a two-way model that would allow it to originate loans for larger banks seeking priority sector exposure under Reserve Bank of India norms, while also helping expand its own lending book in smaller towns and rural areas through loans sourced from fintech partners.
According to Rishi Anand, the managing director and chief executive, Aadhar Housing Finance has already tied up with two public sector banks and is working on further arrangements with digital lenders active in the fintech space. The approach is designed to widen funding sources and make better use of the company’s distribution network, particularly among borrowers in semi-urban and hinterland markets.
The strategy comes as Aadhar Housing Finance continues to grow on the back of demand for low-cost housing. In a message to shareholders, Anand pointed to India’s young population and a rising middle class as long-term support for first-time home ownership, while also noting that the company has built expertise in assessing informal incomes, which is often essential when lending to self-employed borrowers. The company’s assets under management stood at ₹31,364 crore at the end of June 2026, up 18% from a year earlier.
The move also sits within a broader regulatory shift. The Reserve Bank of India’s revised co-lending directions, which came into force on January 1, 2026, created a wider framework for such partnerships and increased scrutiny of transparency and borrower protection. Crisil Ratings said last year that the rules should benefit both banks and non-banks by sharing risk and opening access to harder-to-reach customers, while requiring each regulated entity in a co-lending deal to keep at least 10% of every loan on its own books.
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