The International Finance Corporation (IFC), a member of the World Bank Group, has provided a $400 million loan (approximately ₹3,300 crore) to HDFC, India's largest private mortgage lender, to support the country's shift toward more sustainable growth and increase the availability of green housing in the affordable segment. The loan will help HDFC focus on its green affordable housing portfolio, with 75% of the proceeds ($300 million) earmarked for this sector. The lending framework will also set stringent standards for green buildings, allowing HDFC to improve the quality of its green housing pipeline and direct funds toward this segment. The funding is also intended to enable HDFC to on-lend to people who can afford such housing.
"Given our long-standing partnership, we welcome IFC's expertise to help strengthen our green affordable housing lending portfolio," said Renu Sud Karnad, MD of HDFC. "We are keen to increase our footprint in funding affordable and green housing and are committed to supporting India's efforts for a sustainable and green low-carbon economy."
According to Hector Gomez Ang, Regional Director for South Asia at IFC, it is essential that new buildings and houses in India are designed to be green and energy efficient to ensure sustainable development. Residential housing accounts for around 24% of India's electricity consumption, and a green affordable housing sector is key to reducing the country's greenhouse gas emissions through lower household energy consumption and greener construction activities, among other measures.