State Bank of India signs $274 million agreement with Germany's KfW Development Bank to provide loan facility for affordable housing

Highlights:

1. The facility is designed to complement the Government of India's flagship affordable housing programme, the Pradhan Mantri Awas Yojana

2. The promotional loan has a maturity of 15 years 

3. KfW is one of Germany’s largest banks and a leading promotional bank worldwide 

With an aim to achieve the Government of India's vision of 'Housing for All' and to provide loan facility for affordable housing, the State Bank of India (SBI) on Friday signed $274 million (nearly Rs 1,822.9 crore) agreement with Germany's KfW Development Bank. 

"With its focus on housing loans for economically weaker sections (EWS) and lower income group (LIG) households, the facility is designed to complement the Government of India's flagship affordable housing programme, the Pradhan Mantri Awas Yojana," cited the bank in a press release. 

“SBI is committed to support Government’s mission of Housing for All and this facility will be additional impetus to support this mission," State Bank of India deputy managing director Siddhartha Sengupta, said in a statement.

ALSO READ: From giving infra status to affordable housing to lowering tenure of capital gains tax, real estate players have welcomed Budget 2017 outcome

The promotional loan has a maturity of 15 years.

KfW is one of Germany’s largest banks and a leading promotional bank worldwide.

“Sustainable mortgage loans to low income families to purchase, build or upgrade their homes are critical for inclusive growth and development partnering with India’s largest bank on this mission provides a tailor-made platform for quick upscaling of housing finance for this segment," KfW Development Bank member of executive board Dr Norbert Kloppenburg, said in a statement.

The fund raising process was facilitated by the SBI Capital Markets. 

ALSO READ: "“The thrust on affordable housing is timely""