Chennai: Indian Overseas Bank (IOB) has signed an agreement with the Indian Green Building Council (IGBC) to provide financial support for developers and homebuyers investing in IGBC-certified green buildings. The move aims to boost sustainable construction by making eco-friendly projects more financially viable.
Financing for Green Construction
Under the Memorandum of Understanding (MoU), IOB will offer preferential financing options for real estate projects that meet IGBC’s green certification standards. Developers constructing IGBC-rated buildings and homebuyers purchasing residential units in these projects will be eligible for financial assistance.
Ajay Kumar Srivastava, MD & CEO of IOB, said the bank is committed to supporting sustainability in real estate by integrating green financing into its offerings. K. S. Venkatagiri, Executive Director of IGBC, emphasized that the collaboration would make green buildings financially accessible to a wider section of society.
Incentives for Developers and Homebuyers
To encourage more participation in green construction, IOB’s financial schemes will focus on reducing cost barriers. The MoU also includes:
New financing models for IGBC Green Affordable Housing, IGBC NEST, and NESTPLUS projects, targeting economically weaker sections and lower-income groups.
Awareness campaigns to inform developers and homebuyers about the benefits of green buildings and the financing options available.
Push for Sustainable Urban Growth
With urbanization increasing, green buildings are seen as a solution to energy inefficiency and resource depletion. The collaboration between IOB and IGBC is expected to promote sustainable construction practices and contribute to a lower carbon footprint in India’s real estate sector. The partnership will also focus on tracking emerging trends in green construction to align financial products with evolving sustainability standards.
