Home Loans May Increase to 20% this Year: NHB Chief

National Housing Bank (NHB) plans to disburse an amount close to Rs 17,000 crore as refinance fund to banks and housing finance institutions in 2012-13. According to the Chairman and Managing Director of NHB, it had disbursed about Rs 14,400 crore in the last fiscal 2011-12.

NHB is the apex bank for regulating and supervising housing finance companies. According to NHB chief, of the total amount of Rs 14,000 crore, Rs 5,000 crore will be raised through tax-free bonds, Rs 4,000 will be raised through rural housing fund and another Rs 5,000 via other bonds.

The data shows that, NHB has already disbursed Rs 3,300 crore to fund its refinance plans so far in this fiscal. The chief director of NHB says that, they are witnessing a steady demand for housing loans in this fiscal. He further, says that, home loans disbursements are expecting to grow by 20%.

The Credit Guarantee Trust Fund for low income people will be operated by the end of this fiscal. Individuals with a monthly income of Rs 10,000 to Rs 20,000 are generally considered eligible for taking loans under affordable housing segment. Thus, the risk weight on home loans under low-income level is lowered and therefore, lenders can pass on the benefits to their customers through interest subsidy.

Source: Hindu Business Line

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