RBI rate cut effect: National Housing Bank cuts lending rate by 0.25 pc
refinance assistance to Primary Lending Institutions (banks, HFCs and other lending institutions in cooperative sector) at lower rates for long term in respect of their housing loan portfolio up to Rs 10 lakh extended to the target segments.
Refinance is extended for tenures ranging between five and 15 years at fixed rates.
In order to support the various measures of Government of India and RBI to promote affordable housing finance for EWS and LIG segments in urban areas, the bank has reduced interest
rates under its Special Refinance Scheme for Urban Low Income Housing (LIH).
It has also launched a dedicated low income housing refinance scheme at concessional lending rates in its Silver Jubilee Year.
Under the scheme, NHB provides refinance at fixed rate for up to 15 years, which will allow lenders to extend long term fixed rate loans to the borrowers in this income segment.
The scheme provides an incentive to the lenders to pass on the benefit to the borrowers, so that they are hedged from the volatilities in interest rate under the floating regime, NHB Chairman and Managing Director R V Verma said.
