Dhaka:Asian Development Bank The Asian Development Bank (ADB) has sanctioned a $100 million concessional loan aimed at improving access to affordable and resilient housing finance for low- and middle-income families in Bangladesh, with a special emphasis on women.
According to United News of Bangladesh, the financing will be facilitated through the Palli Karma-Sahayak Foundation (PKSF) and eligible microfinance institutions (MFIs) to offer long-term, collateral-free microfinance loans. These loans are intended to assist families in constructing, repairing, and upgrading their homes.
The project seeks to mitigate the shortage of safe and affordable housing and the limited access to housing finance for households with informal income sources, which are often excluded from traditional mortgage lending. By 2031, it is projected that at least 40,000 households will receive loans, including at least 32,000 women and 24,000 borrowers in areas prone to natural hazards.
Additionally, the initiative will promote financial and land literacy, raise awareness about housing rights, and enhance housing security for women by ensuring proper documentation of spousal residency arrangements. To strengthen resilience, the project will incorporate design and construction measures to fortify homes against flooding, cyclones, and other extreme weather conditions.
This effort is expected to enhance the country's housing finance ecosystem and attract more private sector involvement by improving the capacity of PKSF and MFIs through better data and risk management systems, hazard-risk screening, portfolio monitoring, and digital reporting. The financing includes $40 million from ADB's climate adaptation funds, supplemented by $600,000 in technical assistance grants.
ADB Country Director for Bangladesh Qingfeng Zhang stated, "Housing is a critical foundation for dignity, opportunity, and resilience. 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."