For financing construction of affordable houses in India, British government's Department for International Development will give India's National Housing Bank (NHB) Rs 500-crore loan. The project will begin with eight low-income states -- Rajasthan, Madhya Pradesh, Odisha, Uttar Pradesh, Bihar, West Bengal, Chhattisgarh and Jharkhand.
National Housing Bank CMD RV Verma said in Delhi that the project will involve a DFID (Department for International Development) commitment of up to 50 million pounds (Rs 500 crore) over 2013-2019. Verma said the lending cost for affordable housing will be lower than normal rates.
He added that the project will also expand to other states in the future. The UK Minister of State for International Development Alan Duncan said the partnership will include investments in private sector projects designed to help the poor while generating a return.