NHB approved INR 77.37 bln of loans till Feb under urban infra fund - govt
This story was originally published at 14:05 IST on 24 March 2025
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NEW DELHI – The National Housing Bank sanctioned loans worth INR 77.37 billion till Feb. 28 under the government's Urban Infrastructure Development Fund that was set up in 2023-24 (Apr-Mar), Minister of State for Finance Pankaj Chaudhary said in a written reply to the Lok Sabha on Monday.
The government had set up the fund under the National Housing Bank with an initial corpus of INR 100 billion to finance urban infrastructure in tier-II and tier-III cities. In the Budget for FY24, the government had also announced that it would allocate INR 100 billion under the fund every year.
The government had allocated INR 100 billion in FY25 as well but withdrew INR 70 billion from it and reallocated the funds under Short Term Cooperative Rural Credit Fund to augment the availability of funds for rural credit, Chaudhary said. "The reallocated amount would be replenished to UIDF (Urban Infrastructure Development Fund) through new allocations in FY26," Chaudhary added.
Under the Urban Infrastructure Development Fund, the National Housing Bank provides loans for infrastructure projects at an interest rate of bank rate minus 1.5% per quarter. The loan also allows a moratorium of two years, and is repayable in five annual instalments. End
Reported by Krity Ambey
Edited by Tanima Banerjee
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