UK DFID will Finance 500-Cr to NHB for Low-Cost Homes

The National Housing Bank CMD R V Verma said at an event in Delhi that the British Government's Department for International Development will finance Rs 500-crore loan to National Housing Bank for constructing affordable houses in the low-income states of the country.

He also added that the project will be started in eight low-income states that include Madhya Pradesh, West Bengal, Odisha, Uttar Pradesh, Bihar, Rajasthan, Chhattisgarh,and Jharkhand.Over a period of 2013-2019, the project will comprise a DFID (Department for International Development) obligation of up to 50 million pounds (Rs 500 crore).

Alan Duncan UK Minister of State for International Development said that this project is designed to help the poor and will also involve the partnership investments of private sector in order to generate a return.  He also added that UK loans for small and medium developers to build17,000 low-income households will help India to develop its private sector and this project will also help financing mortgages to low-income families.

R V VermaCMD of NHB further added that this loan consists of two components in which the 40 million pounds that is equal to. 400 crore in Indian rupee will be considered as concessional loan to NHB for constructing affordable housing units and to finance loans to low income families.  The remaining 10 million pounds equal to Rs. 100 crore

Mr. Verma also added that this is a valuable opportunity for an appreciated partnership and the project is significant to take care of the housing shortage especially in low-income states.

He also said the rates on the lending cost for affordable housing will be lower when compared to the normal rates. He also added that in future the project will also expand to other states.

He concluded the event by saying that NHB will contribute by investing about Rs 500 crore or more towards this project.

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