New Delhi , July 25:
International Finance Corporation (IFC), a private sector investment arm of the World Bank Group, has decided to provide loan of USD 250 million (about Rs 1,875 crore) to promote affordable green housing finance for low-income borrowers.
Low and middle-income borrowers will be able to own homes with improved access to finance, thanks to a new investment aiming to boost affordable housing finance in India, a joint statement said.
Aligned with the government of India’s goal to provide ‘Housing for All,’ the funding will also help generate jobs, it said.
At least 25 per cent of the financing has been earmarked for green affordable housing, which is likely to encourage this market in India, it said.
“Green housing is largely regarded as a luxury market in the country, but given its climate benefits, IFC intends to challenge that perception and help boost green affordable housing by partnering with HDFC, with its deep penetration in the Indian housing market and significant commitment to promoting green,” it said.
“This partnership with IFC covering both themes Affordable & Green housing, we hope, will materially further our outreach,” HDFC Ltd managing director Renu Sud Karnad said.
Green affordable housing can help India on its path to deliver on its commitments under the Paris Agreement, to reduce a third of its carbon emissions by 2030 from 2005 levels, it said.