IFC to lend PNB $50 million for providing affordable homes

By Accommodation Times News Services

home loans cheaper thanks to rbiPunjab National Housing Finance with $50 million by IFC, a member of the World Bank Group for providing affordable housing to the needed, particularly among women and self-employed people, in India. IFC also helped mobilize a further $50 million to PNB Housing Finance from other investors.

Out of the total $100 million, around 35% will be used to provide home loans to women, either as principal or co-borrowers. Another 35 per cent will help PNB Housing enhance its presence and focus in emerging cities in the priority states of Uttar Pradesh, Madhya Pradesh, Odisha, Rajasthan, Jharkhand, and Chhattisgarh. IFC will also support the company in its proposed entry into green mortgages for energy-efficient housing.

“IFC’s financing and global expertise will help expand housing finance beyond metros,” said Sanjaya Gupta, Managing Director, PNB Housing. “It will also encourage other housing finance companies to enter the affordable housing segment.”

The housing finance market in India has a huge gap to fill. According to India’s Twelfth Five Year Plan (2012-2017), the housing shortage in the country is estimated at 58.8 million units. Over 90% of this demand is from low-income households. In India, IFC has a committed portfolio of about $200 million in housing finance.

“Given the strong development impact of affordable housing in India, IFC’s investment will reinforce the viability of housing finance for low and middle-income households,” said Giriraj S Jadeja, Regional Head for Asia, Financial Institutions Group, IFC. “Additionally, support to affordable housing will spur construction activity, create jobs, and contribute to economic growth.”

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