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What are the activities of National Housing Bank?

What are the activities of National Housing Bank?

National Housing Bank (NHB), a wholly owned subsidiary of Reserve Bank of India (RBI), was set up on 9 July 1988 under the National Housing Bank Act 1987.The bank was set up with an object of supporting housing finance to all segments of the population with special focus on housing for low and moderate income group.

The facilities provided by NHB can be set out as under;

  1. NHB extends refinance to Primary Lending Institutions (PLIs) like Housing Finance companies, Commercial banks, RRBs, Co-operative banks. Refinance is available for the eligible housing loans extended to individual beneficiaries and for the project loans extended by the banks and financial institutions to various implementing agencies.
  2. NHB facilitate direct loans in respect of housing construction and development of housing related infrastructure by the public agencies.
  3. The repayment of principal and interest on bonds issued by the Housing Finance Companies which are guaranteed by the NHB.
  4. NHB is acting as Special Purpose Vehicle for securitising the housing loan receivables.

The National Housing Bank offers concession in interest rate under refinance schemes in respect of following types of loans.

  • Loans up to Rs.10 lakhs,
  • Loans in rural area,
  • Loans to women,
  • Loan to person of third gender,
  • Loans to disabled and differently abled persons,
  • Loan to SC/ST,
  • Loan to green housing


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