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 the country.
IFC’s $250 million loan to housing finance company HDFC will support its moves to grow its affordable housing and emerging green affordable housing portfolio by improving access to such housing for people on lower incomes. Aligned with the Government’s goal to provide ‘Housing for All,’ the funding will also help generate jobs, said a press release.
At least 25 per cent of the financing has been earmarked for green affordable housing, which is likely to encourage this market in the country, added the release.
Renu Sud Karnad, Managing Director, HDFC Ltd, said, “At HDFC, we are aligned to the Prime Minister’s vision of ‘Housing for All’, especially through promotion of affordable housing. We have parallely cultivated a strong emphasis on ESG, enhanced our environment & social due diligence for on-lending and are working towards deepening our footprint in financing more affordable, smart and green homes. This partnership with IFC covering both themes affordable and green housing, we hope, will materially further our outreach.”
“This partnership with HDFC offers multiple benefits for India, as it can play a leading role in developing the country’s nascent green affordable housing market, while delivering jobs and a climate dividend,” said Hector Gomez Ang, Regional Director for South Asia at IFC.