World Bank and India ink credit pact for Low income Housing Finance Project
The Government of India and the World Bank signed a $ 100 million credit agreement for providing assistance to Low Income Housing Finance Project aimed at helping low income households to secure loans to purchase, build or upgrade their dwellings.
The project will be financed by a credit from the International Development Association (IDA) which is the World Bank’s concessionary lending arm which provides interest free loans with 25 years to maturity and a grace period of five years. National Housing Bank (NHB) will be responsible to carry out the project.
About Low Income Housing Finance Project:
- It aims to provide access to sustainable housing finance for low income households to purchase, build or upgrade their dwellings.
- It strengthens government’s agenda of financial inclusion by making it easier for low income households in urban areas to access housing finance.
- It will also support financial institutions which target low income households and build their capacity to scale up sustainable housing finance.
- It will allow low-income households to switch from informal finance to longer-term, formal sources for their housing needs.
- The project funding is a financial intermediary loan for an implementation period of 5 years.