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India: Low-Cost Affordable Housing Finance

Nonsovereign (Private) Project | 48234-001 Status: Closed

A 10-year senior loan of up to $125 million to Dewan Housing Finance Corporation Limited (DHFL) to fund affordable housing in India. DHFL will deploy 40% of ADB's loan to underdeveloped states (i.e., Uttar Pradesh, Madhya Pradesh, Rajasthan, Jharkhand, Chattisgarh, Uttarakhand, Andhra Pradesh, and West Bengal). The company's lending fulfills the RBI criteria for ECB under low-cost _affordable housing_ (cost of individual units should not exceed Rs3.0 million ($54,000), the loan amount should not exceed Rs2.5 million ($45,000), and the units cannot exceed a maximum carpet area of 60 sq. meters)). ADB provided DHFL a rupee loan in July 2004 ($20 million equivalent) for general on-lending to the lower middle income segment , with the loan maturing in November 2014. The proposed loan now provides a targeted approach based upon DHFL's successful mortgage platform.

Project Details

Project Officer
Gunawardhena, Manohari Private Sector Operations Department Request for information
Country
  • India
Sector
  • Finance
 
Project Name Low-Cost Affordable Housing Finance
Project Number 48234-001
Borrower/Company DEWAN HOUSING FINANCE CORPORATION
Country India
Location
Type or Modality of Assistance
3192 Loan Ordinary capital resources USD 125.00 million Closed
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Finance / Housing finance

Gender Equity and Mainstreaming Effective gender mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Gunawardhena, Manohari
Project Sponsor(s)
Description A 10-year senior loan of up to $125 million to Dewan Housing Finance Corporation Limited (DHFL) to fund affordable housing in India. DHFL will deploy 40% of ADB's loan to underdeveloped states (i.e., Uttar Pradesh, Madhya Pradesh, Rajasthan, Jharkhand, Chattisgarh, Uttarakhand, Andhra Pradesh, and West Bengal). The company's lending fulfills the RBI criteria for ECB under low-cost _affordable housing_ (cost of individual units should not exceed Rs3.0 million ($54,000), the loan amount should not exceed Rs2.5 million ($45,000), and the units cannot exceed a maximum carpet area of 60 sq. meters)). ADB provided DHFL a rupee loan in July 2004 ($20 million equivalent) for general on-lending to the lower middle income segment , with the loan maturing in November 2014. The proposed loan now provides a targeted approach based upon DHFL's successful mortgage platform.
Objectives and Scope
Linkage to Country/Regional Strategy
Safeguard Categories
Environment FI-C
Involuntary Resettlement FI-C
Indigenous Peoples FI-C
Summary of Environmental and Social Aspects
Environmental Aspects Environmental impacts are expected to be insignificant due to the relatively small scale of the activities.
Involuntary Resettlement The proposed investment is not expected to have any involuntary resettlement impact. DHFL''s housing loans are provided to individuals who have evidence of tenure and are voluntarily making improvements to their dwellings. This criterion will be adopted across all housing finance loans under this project.
Indigenous Peoples While few of the beneficiaries may be identified as 'tribal' in the Indian context on the basis of cultural identity, they are not expected to possess the characteristics defining Indigenous Peoples in the SPS. Thus, no impact on Indigenous Peoples is anticipated for this project.
Stakeholder Communication, Participation, and Consultation The primary stakeholders in the project are the low-income households who will seek, receive and utilize housing finance from DHFL. Its operations, strategies, and lending procedures will be reviewed to ensure stakeholders are reached. Measures and targets will be set to ensure that stakeholders benefit from the project.
Timetable for assistance design, processing and implementation
Concept Clearance 28 Apr 2014
Credit Committee Meeting 22 Sep 2014
Approval 18 Nov 2014
Last PDS Update 28 May 2018

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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