NHB gives nod to 6 new entities to become housing finance companies

By: | Published: October 10, 2015 6:43 PM

The National Housing Bank (NHB) has granted permission to six new entities to become housing finance companies.

No housing finance company should grant housing loans to individuals up to Rs 30 lakh with LTV ratio exceeding 90 per cent, NHB said. No housing finance company should grant housing loans to individuals up to Rs 30 lakh with LTV ratio exceeding 90 per cent, NHB said.

The National Housing Bank (NHB) has granted permission to six new entities to become housing finance companies.

These six companies are Supreme Housing Finance, Nivara Home Finance, Khush Housing Finance Private, Bajaj Housing Finance Capri, Global Housing Finance Pvt Ltd and Hinduja Housing Finance Ltd, NHB said in a release today.

“Thus, as on date, the total number of HFCs registered with NHB is 72. New HFCs aim to focus mainly on the affordable housing finance segment and are likely to cater the housing loan needs of the EWS/LIG segment, contributing to achieving the goal of housing for all by 2022,” it said.

Earlier this week, RBI allowed banks to give home loans up to 90 per cent of the value of the property that cost below Rs 30 lakh.

Earlier, the facility was available only in cases where the cost was up to Rs 20 lakh.

This will benefit those who plan to purchase properties in the range of Rs 20-30 lakh.

Following RBI’s notification, NHB too lowered loan-to-value ratio for affordable housing loans to 90 per cent.

No housing finance company should grant housing loans to individuals up to Rs 30 lakh with LTV ratio exceeding 90 per cent, NHB said.

For loans above Rs 30 lakh and up to Rs 75 lakh, LTV ratio cannot exceed 80 per cent, it said.

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