The Indian Green Building Council (IGBC), a part of the Confederation of Indian Industry (CII), has signed a strategic Memorandum of Understanding (MoU) with Punjab National Bank (PNB) to promote green home ownership by making financing for sustainable residential projects more accessible and affordable. The partnership aims to encourage the adoption of environmentally responsible housing while supporting India’s long-term sustainability and climate goals.
The collaboration creates a structured framework for cooperation between IGBC and PNB, enabling eligible IGBC-certified residential projects to be considered under PNB’s Harit Niwas Scheme. The initiative is expected to increase awareness of green housing, promote sustainable construction practices and encourage more homebuyers to invest in certified environmentally friendly homes.
India’s residential sector has emerged as one of the largest contributors to the country’s green building movement. Through its Green Homes Rating System, IGBC has helped accelerate the development of sustainable housing across the country. To date, more than 4,298 green home projects covering over 4.68 billion square feet have been registered under the rating programme. The growing number of certified projects reflects increasing interest among developers and homebuyers in energy-efficient, resource-saving and healthier residential buildings.
Under the agreement, IGBC will assist in identifying residential projects eligible for pre-certification and certification under the Harit Niwas Scheme. Punjab National Bank will provide financing support to both developers and homebuyers purchasing homes in these certified projects. The two organisations will also work together to create awareness, engage with industry stakeholders and develop new financing models that make sustainable housing more affordable.
The partnership will also focus on expanding financing support for projects developed under IGBC Green Homes and IGBC Green Affordable Housing, helping increase the availability of environmentally responsible housing across different income segments.
Speaking on the occasion, Firoz Hasnain, Chief General Manager, MSME and Retail Division, Punjab National Bank, said the partnership reflects the shared commitment of both organisations towards sustainable and responsible development. He said the Harit Niwas Scheme has been designed to make green housing more affordable by offering financial benefits that reduce the cost of home ownership while encouraging customers to choose environmentally responsible homes. He added that the collaboration will create value for homebuyers, developers and financial institutions while supporting India’s sustainability objectives.
Anuj Kumar Agarwal, Chairman, IGBC Green Banks & Finance, said the partnership marks an important step towards expanding the adoption of green residential projects in India. He noted that while homebuyers increasingly recognise the health and environmental advantages of sustainable housing, financial incentives provide an additional reason to invest in certified green homes. Linking IGBC certification with preferential financing creates benefits for customers, developers, lenders and the environment, while strengthening India’s green building movement.
Under PNB’s Harit Niwas Scheme, customers purchasing homes in IGBC-certified projects will receive several financial benefits, including an interest rate concession of 0.10%, zero processing fees, no documentation charges, and up to 5% higher repayment eligibility. These incentives improve affordability while encouraging greater adoption of green homes across the country.
The partnership is expected to deliver long-term benefits across India’s housing ecosystem by making sustainable homes more financially accessible and encouraging developers to integrate green building standards into future residential projects. Beyond environmental benefits, IGBC-certified homes offer lower energy and water consumption, healthier indoor environments and reduced operating costs throughout the building’s lifecycle.
By bringing together green building certification and institutional finance, IGBC and Punjab National Bank are creating a stronger ecosystem that supports homebuyers, developers and financial institutions while accelerating India’s transition towards sustainable, resource-efficient and climate-resilient communities. The MoU represents an important milestone in promoting green finance and strengthening the country’s commitment to sustainable urban development.
