NHB i.e. the National Housing Bank exceeded the refinancing limit for the eligible housing finance institution to Rs.30,000 crores for the financial year 2019.
The limit extension has increased the financial assistance from 24,000 to 30,000 crores and a total of Rs. 8,835 crores has already been sanctioned. This step by the National Housing Bank is likely to increase the fund availability for the eligible housing finance and other companies.
In India, the NHB [National Housing Bank] is the prime agency for promoting housing finance institutions that counts a total of 97 and is currently offering support to the eligible institutions. This financial assistance is a credit flow to housing finance companies.
Being the regulator, National Housing Board [NHB] monitors the liquidity position of all housing finance companies.
Earlier, the top officials of NHB had a meeting with the top developers in the country and discussed about achieving the target of Housing for All by 2022. The methods to boost rural housing were mainly discussed in the meeting.
Nearly 90% of the real estate sector is captured by top housing finance companies [HFC] and they all had a meeting with Dakshita Das, Additional Secretary, Finance who is also the interim Managing Director and Chief Executive of NHB [National Housing board].
The meeting was called to discuss the challenges in rural housing and how demand for the same can be can be boosted in this segment of the market an official said.