National Housing Bank (NHB) today said that it expects to disburse home loans of up to Rs 9,000 crore in the next six months to meet its annual disbursal target of Rs 17,000 crore by June next year.
“So far we have disbursed about Rs 8,000 crore. Our budget is to give loans of Rs 17,000 crore from July to June period. We are confident that we will be able to meet our target,” NHB Chairman and Managing Director R.V. Verma told PTI here on the sidelines of National Real Estate Development Council (Naredco) convention.
Out of this entire disbursement target, about 90 per cent lending will be for houses priced below Rs 25 lakh, he added.
He said NHB usually provides loans to housing finance companies to be used for refinancing of individuals’ home loans and promote affordable housing.
“We offer the loans at different rates and our average interest rate is around 9.25 per cent,” Verma said.
On rural housing, he said: “We offer special concessions for rural and low-income house groups. For the low-income group (LIG) houses priced up to Rs 5 lakh, the interest rate is 8.5 per cent. We also offer fixed interest rate on LIG for 15 years,” he said.
For rural housing the interest rate is 50 basis points lower than the standard rate. So if the average rate is 9.25 per cent, for the rural area it will be 8.75 per cent.
Asked about the RBI’s interest rate policy, he said: “It is very difficult to say where the interest rate will move in the current scenario. Now, growth is taking a front seat and RBI is recognising that. However, inflation is also very important.”
He further said the current inflation is a cost-push phenomenon rather than a demand-push one.