Low-Cost Affordable Housing Finance

There is an acute shortage of housing in India, particularly in urban areas where demographic trends are pressuring current housing stocks. Banks and housing finance companies (HFCs) need longer tenor funding to provide access to affordable housing finance. To partially address this challenge, PSFI offered a 7-year senior loan of up to $200 million or IDR equivalent to PNB Housing Finance Limited (PNBHF), an HFC, to fund affordable housing in India. US$150mn was disbursed, the proceeds of which are being used to support PNBHF's affordable housing lending activities. Geographic targets in underserved areas may be included in the project scope.