International financial institution, World Bank is to provide a soft loan of $ 100 million to India to enable low-income households in urban areas to purchase, build or upgrade their houses, said media report.
The project, for which an agreement was signed between the multi-lateral agency and the finance ministry, would be implemented by the National Housing Bank, which would on-lend the money, said the media report.
"About 10 million people move to India's towns and cities every year and need houses to live in," said World Bank operations advisor Michael Haney, who signed the agreement on the low-cost housing project.
According to the statement of Finance Ministry, the project is aimed at incentivising lenders to focus on low-income households through a 200-300 basis point cut in the cost of funds for lenders.
World Bank statement said that about 90 per cent of the housing shortage in India is accounted for by low-income households. Last year, urban housing shortage was estimated at 19 million.
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