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The Asian Development Bank (ADB) has approved a $100 million concessional loan to expand access to affordable and resilient housing finance for low- and middle-income borrowers in Bangladesh, particularly women.
The Inclusive Affordable Housing Finance Project will channel financing through Palli Karma-Sahayak Foundation (PKSF) and eligible microfinance institutions (MFIs) to provide long-term, collateral-free microfinance loans that will help families construct, repair, and upgrade their houses.
The project will address a significant shortage of safe and affordable housing and limited access to housing finance for households with informal incomes who are not typically served by conventional mortgage lenders, said an ADB press release.
"Housing is a critical foundation for dignity, opportunity, and resilience," said ADB Country Director for Bangladesh Qingfeng Zhang.
"By helping low- and middle-income families, especially women, invest in safer and more resilient homes, this project will contribute to Bangladesh's broader goals of reducing poverty, strengthening social protection, enhancing human development and fostering more inclusive and sustainable economic growth," he added.
By 2031, the project is expected to have provided loans to at least 40,000 households, including at least 32,000 women and at least 24,000 borrowers residing in areas vulnerable to natural hazards.
It will promote financial and land literacy, as well as housing rights awareness, while enhancing housing security for women through strict documentation of borrowers' spousal residency arrangements.
To strengthen resilience and ensure long-term expansion of housing microfinance nationwide, the project will integrate design, construction and shock protection measures to make houses better withstand flooding, cyclones, extreme heat and other impacts of disasters and extreme weather events.
The project will help boost the country's housing finance ecosystem and attract greater private sector participation by strengthening the capacity of PKSF and MFIs through improved data and risk management systems, hazard-risk screening, portfolio monitoring, and digital reporting.
The financing includes $40 million from ADB's climate adaptation financing and is supported by an additional $600,000 in technical assistance grants.
ADB is a leading multilateral development bank supporting sustainable, inclusiv and resilient growth across Asia and the Pacific.
Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure and safeguard our planet. Founded in 1966, ADB is owned by 69 members -- 50 from the region.