Specialized loans for IGBC-certified eco-friendly housing projects reflect Union Bank’s commitment to a sustainable and green future.
Mumbai, January 15, 2025: Union Bank of India, a leading public sector bank, has launched its Green Home Loan program to support eco-friendly housing projects certified by the Indian Green Building Council (IGBC) or other approved rating agencies. As a founding member of IGBC and one of the early adopters of the Partnership for Carbon Accounting Financials (PCAF), Union Bank is taking significant steps toward environmental sustainability.
This innovative loan product is designed to incentivize sustainable housing by offering financial rewards to homeowners for incorporating green building features. With its flexible terms and long repayment period, the Green Home Loan ensures that environmentally conscious homeowners can reduce their carbon footprint while enjoying substantial financial benefits.
Key Features of Union Bank’s Green Home Loan
The Green Home Loan program offers the following advantages:
Eligibility: Open to Indian citizens and NRIs aged 18 to 75 years.
Loan Amount: No upper limit, accommodating projects of all scales.
Interest Rates: A 10 bps concession on certified green housing projects.
Repayment Period: Flexible terms with repayment periods of up to 30 years.
Usage Scope: Applicable for purchase, construction, or takeover of homes or flats certified as Green Buildings by IGBC or similar organizations. The initiative complements India’s growing focus on green housing, offering a gateway for individuals to invest in environmentally sustainable homes without compromising affordability or accessibility
Union Bank’s Commitment to Sustainability
Union Bank of India has been a pioneer in adopting sustainable banking practices, aligning itself with the United Nations’ Sustainable Development Goals (SDGs). As an early member of PCAF, the bank has been actively working to measure and reduce its financed emissions, contributing to a more sustainable financial ecosystem.
By launching the Green Home Loan program, Union Bank is addressing key issues such as:
Promoting the construction of sustainable homes certified by IGBC and other reputed agencies.
Encouraging awareness of green living among Indian citizens and NRIs. Reducing the environmental impact of the housing sector, which is a significant contributor to carbon emissions globally.
The Rise of Green Housing in India
Union Bank of India,the demand for green buildings in India has grown exponentially in recent years. According to IGBC, India ranks among the top three countries in the world in terms of green building footprints, with more than 10 billion sq. ft. of certified projects as of 2025.
Benefits of Green Homes:
Energy Efficiency: Features like solar panels, energy-efficient appliances, and insulation reduce electricity consumption.
Water Conservation: Systems such as rainwater harvesting and low-flow fixtures help save water.
Improved Indoor Air Quality: Non-toxic materials and ventilation systems enhance health.
Cost Savings: Reduced utility bills lead to significant long-term savings.
Leadership Perspective
A senior Union Bank official commented:
Our Green Home Loan program underscores our commitment to fostering sustainable and environmentally friendly housing. By promoting green-certified homes, we aim to empower homeowners and contribute to India’s transition toward a low-carbon future.
Aligning with India’s Green Goals
The Green Home Loan initiative aligns with India’s global commitments, including its National Action Plan on Climate Change (NAPCC) and goals under the Paris Agreement. The housing sector plays a critical role in these efforts, with eco-friendly homes helping to significantly reduce carbon emissions. Organizations like the Confederation of Indian Industry (CII) and IGBC are at the forefront of India’s green building movement, driving awareness and certification for sustainable infrastructure.
Conclusion
Union Bank of India’s Green Home Loan program is a major step forward in promoting eco-conscious living in India. By offering flexible financing for green-certified housing projects, the initiative empowers individuals to contribute to a sustainable future while enjoying economic benefits.
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