National Housing Bank (NHB) aims to disburse close to Rs 17,000 crore as refinance support to banks and housing finance institutions in 2012-13. NHB had disbursed about Rs 14,400 crore in 2011-12.
The apex bank for regulating and supervising housing finance companies, has already disbursed close to Rs 3,300 crore as refinance support so far this fiscal. (It follows the July-June accounting year.)
According to R. V. Verma, Chairman and Managing Director, NHB plans to raise Rs 14,000 crore this year to fund its refinance plans.
“Of this, Rs 5,000 crore will be raised through tax-free bonds, Rs 4,000 crore via rural housing fund and another Rs 5,000 crore by way of other bonds,” Verma told newspersons on the sidelines of a housing conclave organised by the Federation of Indian Chambers of Commerce and Industry here on Wednesday.
NHB has already raised close to Rs 4,000 crore so far. “We are witnessing a steady demand for housing loans this year. In 2011-12, home loan disbursements by banks and housing finance companies grew by 17-18 per cent to Rs 1.3 lakh crore. This year we expect home loan disbursements to grow by 20 per cent,” Verma said.
Credit Guarantee Trust
The Credit Guarantee Trust Fund for low income housing will be operational by the end of this fiscal, he said.
People with a monthly income of Rs 10,000-20,000 are usually considered for loans under the affordable housing segment.
NHB is the nodal agency in charge of administering the fund, which is being floated jointly by the Central and State governments with an initial corpus of Rs 1,000 crore.
“We have set up the fund and it should start operating by the end of this fiscal. The risk weight on home loans under the low-income segment backed by the Credit Guarantee Trust will be lower, thereby giving lenders some capital relief. This will help them pass on the benefit to their customers through an interest subsidy,” he said.