New Delhi: The National Housing Bank will be a boot of Rs 500-Cr loan from the Department of International Development of British Govt to construct affordable house in the country.

The housing project will target the eight-low income states in the first phase in the county.

The lending cost for the affordable housing project will be lower than the market rates. The project will initially start with these eight states and gradually increase to other states in future.

The partnership between the British Department and the NHB will also invest in private sectors to help the poor while getting benefits.

The NHB will give fund to low and medium developer also to build housing projects for 17,000 households. It is also thing to finance mortgages for low-income families.

The loan will be available in two installments; first Rs 400 cr will be given to finance the construction of affordable housing units and the other part will be given to the low-income families as technical assistance.

NHB is also gearing up to infuse additional Rs  500 Cr or more in the affordable housing units according to sources.

If the partnership flourishes according to the plan it can tackle and address housing shortage units in low-income states.