World Bank to give India 100 million US Dollars loan for housing project

To help lower-income families obtain loans by offering incentives to lenders.

The World Bank has signed an agreement with the Indian government to provide a USD 100 million loan to help low-income families secure housing loans.

“The Loan and Project Agreements for World Bank (IDA) assistance of USD 100 million for low-income housing finance project were signed between Government of India/National Housing Bank (NHB) and the World Bank here yesterday,” the Finance Ministry said in a release today.

The agreement was signed by Department of Economic Affairs Joint Secretary Nilaya Mitash,NHB Chairman and Managing Director RV Verma and World Bank (India) Operations Advisor Michael Haney,it added.

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The objective of the project is to provide access to sustainable housing finance for low-income households to purchase,build or upgrade their dwellings,it added.

Financing under the project aims to create incentives for lenders to focus on lower-income households through a net all-in reduction of the lenders’ cost of funds of about 200-300 basis points,the release said.

“It is a financial intermediary loan for an implementation period of five years. NHB is the implementing agency,” it added.

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