International Financial Corporation provides $400 million loan to HDFC to promote green housing

Tags: Economy/Finance

World Bank Group member International Financial Corporation (IFC) will provide a $400 million loan to India’s largest housing finance company, Housing Development Finance Corporation (HDFC).

HDFC will use around 75% of the loan amount ($300 million) to provide loans to the affordable green housing sectors in India.

Green Houses are built with sustainable, environmentally-friendly, energy-efficient, and recyclable resources. These houses are constructed in such a way that water, air, solar, and geothermal energy are optimally utilized, thus reducing energy waste. Affordable houses means that it will target Middle income groups.

According to the IFC “around 275 million people in India, which is 22 percent of the population, do not have access to adequate housing and rural housing shortage is twice that of urban areas.” The loan will support the government effort to provide Housing for All.

 Mumbai based HDFC is the first specialized housing finance company in India. Incorporated in 1997, it provides finance to individuals and developers for the purchase, construction, development and repair of houses and commercial properties.

Current chairman: Deepak Parekh

International Finance Corporation 

It is a part of the World Bank Group and was set up in 1956.

It does not provide loans to the government but invests in the private sector companies of the member countries. It invests in the shares and the debt instruments of private companies.

Headquarters: Washington DC, United States of America.

Director General: Makhtar Diop

Member Countries: 186