Homes for poorer members of society: KfW supports the acquisition of residential property in India

• KfW signs loan agreement for the amount of USD 270 million
• Contribution to the improvement of living standards for poorer members of society
• Important factor in the growth and development of the Indian economy

The State Bank of India (SBI) and KfW (on behalf of the German Ministry for Economic Cooperation and Development (BMZ)) signed a credit line agreement worth over USD 270 million today in New Delhi. SBI will use this line to grant loans for the construction, purchase and renovation of affordable residential property to borrowers with unstable incomes and a lack of collateral. The target group will be households with an annual income in the range of up to EUR 8,000.

The credit line is supporting a programme set up by the Indian government to promote affordable housing (Housing for All - Pradhan Mantri Awas Yojana), which plans for the construction of 110 million additional homes by 2022.

"Sustainable mortgage loans that provide low-income families with access to their own home are important for the growth and development of the Indian economy. Working with India's largest bank on this programme provides the ideal platform for the rapid expansion of housing finance in this segment," explains Dr Kloppenburg, Member of the KfW Executive Board.

SBI is India's oldest and largest bank. The Indian government currently owns 59 % of the bank's equity. The SBI Group as a whole offers a wide array of financial and non-financial products and has 16,000 branches across India.

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www.KfW-Entwicklungsbank.de