Piramal Finance Limited (PFL) is a large listed non-banking financial company registered with the Reserve Bank of India and is an established player in the affordable housing finance segment in India.  NDB’s loan will provide longer-term funding to PFL to support and expand its on-lending for individual housing loans to Economically Weaker Sections (EWS) and Low Income Group (LIG) for acquisition and construction of affordable houses.

The project compliments  the Government of India’s ‘Housing for All’ plan and increases affordable house ownership among EWS and LIG segments.

NDB funds will be used to finance affordable housing based on agreed eligibility criteria, including target economic groups (EWS/LIG) and purchase or construction of dwelling units subject to defined thresholds. The eligibility criteria also prioritize states with higher housing shortage and lower income levels for greater development impact. The project will be implemented over a period of 24 months.

The Project has been categorized as Category FI-C in line with the NDB Environment and Social Framework (ESF). NDB Loan will be utilized for the retail home loan portfolio, so the E&S impacts associated with the project are expected to be limited. An Environmental and Social Impact Management Plan has been developed to ensure compliance with the provisions of the country systems and the NDB ESF.