The Indian Green Building Council (IGBC), part of the Confederation of Indian Industry (CII), and Punjab National Bank (PNB) have signed a strategic Memorandum of Understanding (MoU) to promote green home ownership in India by enabling greater access to preferential green financing for buyers of IGBC-certified residential projects.
The collaboration establishes a structured framework for the seamless exchange of information between IGBC and PNB, enabling eligible IGBC certified residential projects to be considered under PNB’s Harit Niwas Scheme. The initiative is expected to significantly enhance awareness about sustainable housing while encouraging greater adoption of green building practices across the real estate sector.
The residential sector has emerged as one of the largest contributors to India’s green building movement, with the IGBC Green Homes Rating System driving the adoption of sustainable housing across the country. Today, the rating system has facilitated 4,298 registered green home projects, covering over 4.68 billion sq. ft., This growing momentum reflects the increasing commitment of developers and homebuyers towards resource-efficient, healthier, and environmentally responsible homes. The collaboration between IGBC and PNB is expected to further strengthen this movement by making certified green homes more financially accessible to homebuyers.
Mr. Firoz Hasnain, Chief General Manager, MSME & Retail Division, Punjab National Bank signed the MoU on behalf of Punjab National Bank, and said, “We are pleased to join hands with the Indian Green Building Council (IGBC) in a partnership that reinforces our shared commitment to sustainable and responsible growth. Through PNB Harit Niwas, we aim to make green housing more accessible and affordable by providing customers with enhanced financial advantages that improve affordability, ease the financing burden, and encourage the adoption of environmentally responsible homes. This collaboration represents a strategic partnership that creates shared value for both institutions—while IGBC advances the adoption of green building standards across the country, PNB empowers customers to embrace sustainable living through attractive financing support. Together, we aspire to accelerate the transition towards greener communities, create long-term value for homebuyers, and contribute meaningfully to India’s sustainability and climate goals.”
Under the partnership, IGBC will support the identification of residential projects eligible for IGBC pre-certification and certification under the Harit Niwas Scheme, while PNB will promote financing for developers and homebuyers in these projects. Together, the organizations will drive awareness, engage ecosystem stakeholders, and explore innovative financing models to make green housing more affordable.
The collaboration will also explore innovative financing models for affordable green housing, including projects under IGBC Green Affordable Housing and IGBC Green Homes.
Mr. Anuj Kumar Agarwal, Chairman IGBC Green Banks & Finance, said, “ The collaboration between IGBC and Punjab National Bank marks a significant milestone in mainstreaming green homes in India. While customers increasingly recognize the environmental and health benefits of sustainable homes, financial incentives, enhanced eligibility provide an added reason to choose greener living. By linking IGBC green building certification with preferential financing, we are creating a win-win proposition for homebuyers, developers, financial institutions, and the environment alike. We believe this initiative will accelerate the adoption of IGBC-certified green residential projects and contribute meaningfully to India’s sustainability and climate goals.”
PNB’s Harit Niwas Scheme offers an attractive suite of benefits for customers purchasing their dream homes at IGBC certified green projects, including an interest rate concession of 0.10% below the applicable home loan rate, nil processing fee, nil documentation charges, and up to 5% enhanced repayment eligibility. By linking these financial incentives with IGBC-certified green homes, the partnership strengthens the value proposition for homebuyers while encouraging developers to integrate sustainability into future residential developments.
The partnership is expected to create multiple positive outcomes across the housing ecosystem by linking IGBC-certified green homes with preferential financing through PNB’s Harit Niwas Scheme. By offering tangible financial incentives to homebuyers such as lower borrowing costs and enhanced affordability, the initiative enhances the value proposition of investing in green and sustainable homes while encouraging developers to pursue IGBC Green Building Certification as a key market differentiator.
Beyond improving access to green finance, the collaboration reinforces the growing recognition that green buildings deliver both environmental and long-term economic benefits through enhanced energy and water efficiency, healthier indoor environments, and lower lifecycle costs. Together, IGBC and Punjab National Bank aim to accelerate the adoption of sustainable housing while supporting India’s broader climate, resource efficiency, and sustainable urban development goals.
The collaboration further accelerates the growing recognition that sustainability is becoming a key driver of value in India’s residential real estate sector. Beyond delivering environmental benefits, IGBC-certified green homes offer long-term advantages through lower energy and water consumption, healthier indoor environments, and reduced lifecycle costs. By bringing together green building certification and institutional finance, IGBC and Punjab National Bank are creating an enabling ecosystem that supports homebuyers, developers, and India’s broader climate and sustainable development goals.
The initiative also reinforces the growing recognition that sustainability is increasingly becoming a key driver of value in India’s residential real estate market. By bringing together certified green housing and institutional finance, PNB and IGBC are creating an enabling ecosystem that supports homebuyers, developers, and the country’s broader climate and sustainable development goals.The MoU marks an important step in integrating green building certification with institutional finance, creating an enabling ecosystem that supports homebuyers, developers, and financial institutions alike. By making sustainable housing more accessible through preferential financing, IGBC and Punjab National Bank are reinforcing the role of green finance in accelerating India’s transition towards climate-resilient, resource-efficient, and future-ready communities.
