Low-Cost Affordable Housing Finance

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.