National Housing Bank (NHB) plans to raise $200 million (about R1,100 crore) to refinance individual loans under the recently allowed external commercial borrowings (ECBs) for low-cost housing projects by the Reserve Bank of India (RBI).
On December 17, RBI allowed real estate developers and housing finance companies to raise up to $1 billion through ECBs in the current financial year to promote low cost housing projects. The funds raised through ECBs could be used either for developing low-cost housing projects or for providing loans up to R25 lakh to individuals for buying units priced at R30 lakh or less.
?We plan to raise $200 million to refinance individual loans under this scheme,” RV Verma, the chairman and managing director of NHB told newspersons on sidelines of a seminar on ?Regulatory Regime for Mortgage Finance and Risk? organised by NHB and RBI promoted Centre for Advanced Financial Research and Learning.
Under the scheme, RBI has also made NHB as the nodal agency to which the builders/developers need to apply for availing funds. RBI has said that builders/developers meeting the eligibility criteria shall have to apply to NHB in the prescribed format. Verma said they are deciding the format.
On the growth in overall housing loans disbursements during the year, Verma said, banks and housing finance companies are expected to disburse R1.7 lakh crore of hosuing loans in financial year 2012-2013, about 20% growth over last year, which stood at about R1.3 lakh crore.
