Tag: National Housing Bank

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Centre urges unified urban planning, expanded credit for housing needs

File Photo NEW DELHI: On Friday, Union Housing and Urban Affairs Minister Manohar Lal stressed the necessity for cooperation among policymakers, financial institutions, and urban planners to improve accessibility and inclusivity in housing finance, especially with the anticipated surge in India’s urban population. During a conference organized by the National Housing Bank (NHB) and the Asia Pacific Union for Housing Finance (APUHF), the minister underscored the importance of integrated urban planning, which includes developing housing linked to transportation and innovative policies to meet future demand. Citing a joint study conducted by NITI Aayog and the Ministry of Housing and Urban…

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Reforming Land Policies Can Boost Housing Affordability: Niti Aayog

Representative AI image NEW DELHI: Rajiv Gauba, a member of Niti Aayog, highlighted significant challenges in housing development due to land constraints. He called for comprehensive reforms to reduce land costs. “We should allocate a minimum of 10% of residential land for affordable housing in our master plans, increase permissible FARs (Floor Area Ratios) from the current 2-3 to 5-6, promote transit-oriented development, and adopt land pooling. These strategies will help reduce land costs and increase housing supply,” he stated. Currently, land accounts for 50-70% of total project costs, which is notably higher than in similar infrastructure sectors. Gauba made…

Housing FinanceLatest Stories

NHB Advocates for Lower Home Loan Rates; Lenders Delay Cuts

MUMBAI: Sanjay Shukla, the managing director of the National Housing Bank (NHB), recently urged major home financiers to lower prime lending rates in a discussion with key industry players, as reported by RealtyDailyNews. However, mortgage lenders have postponed any rate cuts until their annual internal benchmarks are reassessed in April. “During our call, the NHB chairman stressed the need for the ecosystem to transmit lower rates to borrowers, asserting that the advantages of reduced borrowing costs haven’t reached existing clients,” stated the CEO of a major housing finance company (HFC). “While HFCs are securing funds at significantly lower market rates,…

Housing FinanceLatest Stories

NHB Flags PMAY 2.0 Disbursal Delay, Urges Finance Firms to Act

MUMBAI: The National Housing Bank (NHB) is advocating for increased adoption of PMAY 2.0, highlighting slower-than-anticipated disbursements in the interest subsidy scheme, as per sources involved in discussions with home financiers and regulators. In a recent meeting with chief executives of major housing finance companies (HFCs), the NHB leader expressed concerns that disbursements were “not meeting expectations” and encouraged lenders to intensify their focus on the program, according to officials who participated in the discussions. “The goal is to significantly enhance PMAY 2.0, yet the disbursement pace has been underwhelming,” remarked an official with insight into the matter. “The regulator…

Housing FinanceLatest Stories

HFCs Gain NHB Support to Diversify Funding, Lower Loan Costs

MUMBAI: Housing finance companies (HFCs) are set to experience reduced borrowing costs following the National Housing Bank’s (NHB) approval of partial credit enhancement (PCE) for bonds they issue. This initiative aims to enable HFCs to pass on the benefits of lower funding costs to borrowers, particularly those in the affordable housing sector. In a letter dated October 6, the NHB notified housing finance companies that it would offer PCE on secured non-convertible debentures (NCDs) they issue, with the goal of helping them “diversify their funding sources” and “reduce reliance on banks.” The NHB stated that the facility would only be…

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Property Prices Up in 45 of 50 Cities in Q1 FY26: NHB

NEW DELHI: According to the latest data from the National Housing Bank (NHB), 45 out of 50 cities experienced a rise in property prices during the first quarter of 2025-26. “Among the 50 cities monitored, five reported a decline in property prices year-on-year. Howrah saw the largest drop at 6.1%, followed by Kochi at 5.5% and Thiruvananthapuram at 4.8%,” stated the NHB RESIDEX residential housing price index released on Thursday. The 50-city Housing Price Index (HPI), which is based on property valuation from banks and housing finance firms, revealed an annual increase of 5.7% during this quarter, down from 6.6%…

Housing FinanceLatest Stories

Housing Finance Firms Scrutinized for Lending Issues

The National Housing Bank (NHB) is intensifying its scrutiny of housing finance companies (HFCs) for violating loan-to-value (LTV) norms concerning high-value home loans, according to sources familiar with the matter. Regulatory inspections by the NHB uncovered instances where loans exceeding ₹75 lakh were approved with LTVs as high as 90%, breaching the established 75% limit. The NHB has instructed lenders to reclassify these loans as non-home loans (NHL). “The regulator has identified several mortgage lenders disbursing substantial amounts for high-value residential properties,” an NHB official stated. “The NHB has communicated with these firms, ordering them to cease such practices and…

Housing FinanceLatest Stories

NHB Unveils Refinance List to Prevent Misuse

MUMBAI: In a significant move towards transparency, the National Housing Bank (NHB) has released, for the first time, the list of beneficiaries under its refinance scheme. This initiative aims to prevent the misuse of NHB’s name by various lending institutions. This decision follows the exposure of Aviom India Housing Finance, which reportedly used outdated NHB refinance sanction letters, some dating back three to four years, to obtain loans from banks. “The NHB is committed to ensuring such incidents as those involving Aviom do not occur again. By making its refinance list public, it seeks to deter fraudulent entities from leveraging…

Housing FinanceLatest Stories

NHB directs housing finance firms to pay interest on advance EMIs

The National Housing Bank (NHB) has instructed housing finance companies to provide interest on advance payments made by borrowers that have not been immediately applied to their Equated Monthly Instalments (EMIs) and are instead held in sundry or suspense accounts, according to sources familiar with the situation. The interest should be paid at the same rate applicable to the customer’s home loan. This initiative aims to ensure fair lending practices and prevent borrowers from incurring excessive interest costs when their advance payments are not applied promptly. “NHB is fundamentally ensuring that housing finance companies cannot profit from holding onto customers’…

Housing FinanceLatest Stories

NHB Anticipates RMBS Firms to Raise ₹10,000 Cr in FY26

Sure! Here’s a rewritten version of the content: Representative image MUMBAI: The country’s first-ever residential mortgage-backed securities were listed on Monday. The housing finance regulator, NHB, anticipates that firms will raise over Rs 10,000 crore through this method in the current fiscal year. The National Housing Bank-backed RMBS Development Company (RDCL) listed its inaugural set of securities worth Rs 1,000 crore, maturing in 20 years with a 7.26% monthly coupon, on the NSE. NHB’s Managing Director and CEO, Sanjay Shukla, stated that he anticipates up to 10 additional transactions this fiscal year, which will allow lenders to raise between Rs…