Now Reading: Several banks offer interest rebate on green homes, says IFC expert
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Several banks offer interest rebate on green homes, says IFC expert
Several banks offer interest rate rebates for green-certified homes, both individual and commercial, according to Faiza Solanki, regional technical specialist at the International Finance Corporation, a World Bank member. Speaking at the…
Several banks offer interest rate rebates for green-certified homes, both individual and commercial, according to Faiza Solanki, regional technical specialist at the International Finance Corporation, a World Bank member. Speaking at the CPCL-The Hindu Sustainability Summit 2026 in Chennai on Wednesday, she said banks have an eight-point checklist for individual applicants. She noted that green certification has grown since 2013 and now covers affordable projects, citing the Tamil Nadu government's Thozhi Hostels as an example.
Ms Solanki identified lack of awareness as the main barrier to wider adoption. Panellists including Vishwajit Kumar of Navin's Housing and Bharath Kumar Venkatesan of Urbando said commercial tenants are willing to pay for green features but residential buyers often view sustainability as a luxury tag. The panel called on the state government to incentivise green buildings, suggesting additional free floor space index (FSI) as a measure that could make green building standard within a decade.
Indian Opinion Analysis
The IFC's push for green building loans builds on its own EDGE certification programme, which has certified millions of square feet across India since 2014. The key hurdle is upfront cost: a certified green home can cost 5-8% more to build, though long-term utility savings typically recover that within three to five years. Banks offering rebates effectively lower that barrier, but only if buyers know to ask. The Tamil Nadu government, already using green norms for its Thozhi hostels, could set a precedent with the FSI incentive the panel sought. The state's next housing policy announcement will show whether that proposal gains official backing.
Source: thehindu.com
This brief was synthesised by AI from the source linked above.
