ADB Approves $100m Loan for Affordable Housing in Bangladesh

The Asian Development Bank (ADB) has approved a $100 million concessional loan to expand access to affordable and climate-resilient housing finance for low- and middle-income households in Bangladesh, with a particular focus on women.

Under the Inclusive Affordable Housing Finance Project, the financing will be channelled through the Palli Karma-Sahayak Foundation (PKSF) and eligible microfinance institutions (MFIs) to provide long-term, collateral-free housing loans.

The loans will help families construct, repair and upgrade their homes, particularly those with informal sources of income who are often unable to access conventional mortgage financing.

By 2031, the project is expected to provide loans to at least 40,000 households, including at least 32,000 women and 24,000 borrowers living in areas vulnerable to natural hazards.

The project will also promote financial and land literacy and raise awareness of housing rights. It will strengthen housing security for women through strict documentation of borrowers' spousal residency arrangements.

To improve resilience, the project will incorporate climate- and disaster-resilient design, construction and shock-protection measures so homes can better withstand flooding, cyclones, extreme heat and other hazards.

The initiative will also strengthen Bangladesh's housing finance ecosystem and encourage greater private-sector participation by improving the capacity of PKSF and MFIs. This will include upgraded data and risk-management systems, hazard-risk screening, portfolio monitoring and digital reporting.

The financing includes $40 million in climate adaptation financing from ADB, along with 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.