IFC, Rajasthan Govt to setup firm to build 1.25 lakh homes

The National Housing Bank (NHB) and the International Finance Corporation (IFC) have entered into a partnership with the Rajasthan state government to build over 1.25 lakh affordable houses in the state for the poor and those working in the unorganised sector. International Finance Corporation (IFC), an agency of the World Bank, said Wednesday it will set up a new housing finance company in collaboration with Rajasthan government and the National Housing Bank to provide cheaper loans to low-income households. IFC's own stake and mobilisation through stakeholders such as the National Housing Bank, government of Rajasthan, and private sector players, will help establish the company with an initial capital of USD 22 million, IFC said in a statement.
The exact shareholding structure is currently under discussion. The new company will focus on providing affordable housing finance options to low- and middle-income households that have limited or no access to formal financial services. "Involvement of multiple stakeholders and the ability to build successful public-private partnerships is crucial to developing an ecosystem that will improve accessibility of housing finance and affordable housing. We will support the company through equity, training, and refinancing," said R. V. Verma, Chairman and Managing Director, National Housing Bank.