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, with a particular focus on women.
Under the Inclusive Affordable Housing Finance Project, financing will be channelled through the Palli Karma-Sahayak Foundation (PKSF) and eligible microfinance institutions (MFIs) to provide long-term, collateral-free microfinance loans to help families construct, repair and upgrade their homes, according to a press release.
The project aims to address the shortage of safe and affordable housing and limited access to housing finance among households with informal sources of income that are not typically served by conventional mortgage lenders.
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.
“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 said.