<P> The IDA lends to countries with the aim to finance projects that will develop infrastructure and improve education , healthcare , access to clean water and sanitation facilities , and environmental responsibility . It is considered to be the soft lending window of the World Bank , while the IBRD is considered to be the hard lending window . The association offers grants and loans with maturities ranging from 25 to 40 years , grace periods of 5 to 10 years , and interest rates of 2.8 % or 1.25 % depending on whether the borrower is a blend country and to which degree it is eligible . Regular IDA - eligible borrowers may take advantage of no - interest loans . Financial resources are allocated to eligible countries based on their success at implementing pro-growth and a poverty - reducing domestic policies . The IDA uses the World Bank 's Country Policy and Institutional Assessment ( CPIA ) development indicator to determine each country 's place in a resource allocation index . It then prioritizes its lending to those countries which are indicated to be most promising in terms of favorable policies and aid effectiveness . The IDA adopted the Crisis Response Window in 2007 to enable the rapid provision of emergency financing in response to crises . The association adopted the Immediate Response Mechanism in 2011 to provide IDA borrowers with immediate access to withdraw undisbursed portions of their loans , should a crisis arise that meets the mechanism 's criteria . </P>
<P> The IDA lends to countries with the aim to finance projects that will develop infrastructure and improve education , healthcare , access to clean water and sanitation facilities , and environmental responsibility . It is considered to be the soft lending window of the World Bank , while the IBRD is considered to be the hard lending window . The association offers grants and loans with maturities ranging from 25 to 40 years , grace periods of 5 to 10 years , and interest rates of 2.8 % or 1.25 % depending on whether the borrower is a blend country and to which degree it is eligible . Regular IDA - eligible borrowers may take advantage of no - interest loans . Financial resources are allocated to eligible countries based on their success at implementing pro-growth and a poverty - reducing domestic policies . The IDA uses the World Bank 's Country Policy and Institutional Assessment ( CPIA ) development indicator to determine each country 's place in a resource allocation index . It then prioritizes its lending to those countries which are indicated to be most promising in terms of favorable policies and aid effectiveness . The IDA adopted the Crisis Response Window in 2007 to enable the rapid provision of emergency financing in response to crises . The association adopted the Immediate Response Mechanism in 2011 to provide IDA borrowers with immediate access to withdraw undisbursed portions of their loans , should a crisis arise that meets the mechanism 's criteria . </P>
which institute is known as soft loan window of world bank
which institute is known as soft loan window of world bank
The IDA
The IDA