TWO housing projects which will deliver more than 260 new town centre homes are being given a financial kick-start.
The money comes from the Government-backed Get Britain Building fund administered by the Homes and Communities Agency.
The loans are designed to help housing developments, which may have stalled, get back on track.
Under the terms of the loans, work on chosen developments must be judged to have started by the end of March this year and be completed by the end of March 2015.
The loans announced this week will see Stanhope/Schroders Croydon Gateway Limited Partnership receive £3.7 million, enabling it to push ahead with the first phase of 163 homes on its Ruskin Square site next to East Croydon station.
A total of £4.5 million is being offered to the Durkan Group for its scheme to build 98 flats on the corner of Scarbrook Road and Wandle Road.
Planning permission was granted at the end of 2009.
A council spokesman said: "The bids were successful because of the collaborative approach between the council and the developers, which has demonstrated the ability and commitment of the parties to meet key funding, planning and construction requirements, including the completion of the schemes before March 2015."
Councillor Jason Perry, the council's cabinet member for planning, regeneration and transport, said: "This is excellent news, which not only shows the construction industry's confidence in Croydon, but also promotes the borough's importance as a place for employment opportunities and economic growth.
"It comes just days after the announcement by Hammerson and Westfield Shoppingtowns Ltd that they have joined forces to put in a £1 billion bid to redevelop our town centre shopping malls."
He added: "Croydon is re-asserting itself as the main destination in the south, outside of central London, for investment."
Ian Mason, fund director at Schroders, said: "We are delighted that Ruskin Square has been approved by the Homes and Communities Agency for £3.7 million funding. We have not yet submitted a planning application for the first phase of housing at Ruskin Square but we hope to be able to do so shortly."