Under the scheme, Citibank (India) will provide a loan of Rs 3.5 crore to SPARC and Rajiv-Indira Co-operative Housing Society, which is a member of the National Slum Dwellers Federation (NSDF). SPARC works closely with NSDF and Mahila Milan-two peoples organisations. The scheme, developed by SPARC and Citibank's employee-volunteers, is structured against a lien on sale-proceeds from the area under the project, and partly against cash collateral. Homeless International-a UK-based NGO supporting housing initiatives in Asia, Africa and latin America-will deposit £100,000 with Citibank (London), which will in part, guarantee the loan. The deposit that will secure the loan is provided by Airways Charitable Trust. Citibank, on the basis of the due-diligence undertaken by SPARC will advancethe monies to both SPARC and Rajiv-Indira Co-operative Housing Society.

The amount so extended will have a tenure of 30 months. The project is being developed under Slum Rehabilitation Scheme of the Government of Maharashtra by the Rajiv-Indira Co-Operative Housing Society. SPARC will manage both the construction and development activity, and an amount of Rs 70 lakh had already been invested by the body, which is to be refinanced by Citibank.

"Our volunteers worked hard with SPARC to understand the needs of such rehab programmes and designed an innovative template to finance the project in full compliance with our own systems and due diligence", Citibank (India) global consumer bank-head, Nanoo G Pamnani, said.