national housing board

8/13/2019 National Housing Board

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National Housing Bank


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Mission

"To harness and promote the market

potentials to serve the housing needs of all

segments of the population with the focus on

low and moderate income housing "


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Objectives

NHB has been established to achieve, inter alia, the followingobjectives :

To promote a sound, healthy, viable and cost effective housing financesystem to cater to all segments of the population and to integrate thehousing finance system with the overall financial system.

To promote a network of dedicated housing finance institutions to

adequately serve various regions and different income groups. To augment resources for the sector and channelize them for housing.

To make housing credit more affordable.

To regulate the activities of housing finance companies based onregulatory and supervisory authority derived under the Act.

To encourage augmentation of supply of buildable land and alsobuilding materials for housing and to upgrade the housing stock in thecountry.

To encourage public agencies to emerge as facilitators and suppliers ofserviced land, for housing.


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Functions - Regulations

It regulates the housing finance system of thecountry to its advantage and prevents the affairsof any housing finance institution beingconducted in a manner detrimental to the

interest of the depositors National Housing Bank has been empowered to

determine the policy and give directions to thehousing finance institutions and their auditors

National Housing Bank supervises the sectorthrough a system of on-site and off-sitesurveillance


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Functions - Financing

Extending refinance to different primary lenders in respectof

Eligible housing loans extended by them to individualbeneficiaries, for project loans extended by them to various

implementing agencies Lending directly in respect of projects undertaken by public

housing agencies for housing construction anddevelopment of housing related infrastructure.

Guaranteeing the repayment of principal and payment of

interest on bonds issued by Housing Finance Companies. Acting as Special Purpose Vehicle for securitizing the

housing loan receivables.


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Functions - Promotion

The principal mandate of the Bank is to promote housingfinance institutions to improve/strengthen the creditdelivery network for housing finance in the country

The Bank has played a facilitator role in this regard instead

of itself opening such dedicated housing financeinstitutions

As a part of its promotional role NHB has also formulated ascheme for guaranteeing the bonds to be issued by thehousing finance companies

Considering the need for trained personnel for the sectorNHB has designed and conducted various trainingprogrammes


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NHB- Initiatives

1. Residential mortgage backed securitisation

Residential mortgage-backed securities (RMBS)

are a type of mortgage-backed security which are

backed by mortgages on residential rather than

commercial real estate.

NHB launched the pilot issues of Mortgage

Backed Securities (MBS) in August 2000 in theIndian financial market, followed by other MBS

issues cumulating to Rs.664 crores.


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NHB- Initiatives

2. Retail deposites

NHB is offers three deposit schemes at attractive rates of interest-

NHB SUNIDHI Term Deposit Scheme: It is a term deposit scheme for

Individuals/HUFs/Partnerships/Societies & Trusts & Association of persons. The

minimum deposit in the scheme is Rs. 50,000 with a maturity period ranging from

12 months to 60 months.

NHB SUVRIDDHI (Tax Saving) Term Deposit Scheme: It is a tax saving deposit

scheme for individuals & HUFs U/S 80 C of Income Tax Act. The minimum deposit

in the scheme is Rs. 10,000 and thereafter in multiple of Rs. 10,000 with a fixed

maturity of 60 months. Individuals & HUFs can invest maximum Rs. 1,00,000 in

the scheme. Special Term Deposit Scheme for HFCs: The scheme is applicable only to the

Housing Finance Companies accepting deposit from public. HFCs can make a

minimum deposit of Rs. 25,00,000 and thereafter in multiple of Rs. 5,00,000 for a

maturity ranging from 18 months to 60 months.


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NHB- Initiatives

3. Reverse Mortgage Loan

Reverse mortgage is a financial product that enables senior

citizens (60 +) who own a house to mortgage their property

with a lender and convert part of the home equity into tax-free income without having to sell the house.

Instead of you making monthly payments to a lender, as with

a regular loan, the lender makes payments to you. Multipleoptions are available for repayment of the loan in lump sum

at the end of the loan term. Maximum period of loan is of

twenty years.


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NHB- Initiatives

4. REVERSE MORTGAGE LOAN enabled ANNUITY

Reverse Mortgage is the new type of loan scheme to cater to the old age

peoples last days needs.

In Reverse Mortgage Loan enabled Annuity your annuity is fixed

throughout borrowers life span. Which is not the case with normalReverse Mortgage loans, suppose property value drops then your monthly

payment drops.

Also if borrower lives even after 20 years of loan period then you will not

get any periodical income from normal reverse mortgage but this is not

the case with annuity backed reverse mortgage


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Presently

It has been estimated that the housingrequirements till 2012 in India is around 74 mnunits out of which nearly 90% of the total

housing units in both the rural and urban areasare for the poor and low income segmenthouseholds

NHB is on the verge of developing a new financial

architecture , policy and regulatory frameworkfor affordable housing on sustainable lines for theweaker sections of the society


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Current News

For the financial year ending 30thJune 2012

the bank posted a net profit of Rs 387 Cr and

gross loans and advances of Rs 28,940 Cr

The banks total loan disbursement during the

year were Rs 14,454 Cr , out of which the

share of rural housing was 39% aggregating Rs

5610 Cr


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THANK YOU

national housing board

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