National Housing Bank : Plans Refinance Scheme to Aid Low Income Property Buyers..!


National Housing Bank (NHB) is planning to offer a special refinance scheme to mortgage lenders for loans to low income groups in a move that is likely to create a long term market for fixed rate home loans and boost affordable housing reports Mint.

Lenders, including housing finance companies (HFCs), will use the funds from NHB to offer loans to low-income borrowers at concessional fixed interest rates & insulate them from the volatility of rates.

 Mr.R. V. Verma, CMD, National Housing Bank said, “The NHB board had recently approved this refinance scheme for providing loans to low income households to buy affordable houses. It should be rolled out from the next fiscal (2013-14)”

15 Year Loan..!

Under the refinance scheme, borrowers with an annual income of up to Rs. 2 lakh can get a 15 year loan from banks or HFCs at concessional fixed interest rates. This scheme will facilitate purchases of houses costing about Rs. 10 lakh.

Mr.R.V.Verma also said, “There will be a cap on the lending rate so that a long-term, fixed-rate market for these people who can not absorb this volatility of floating rate is created. Also, this long-term, fixed rate will be available to them at a relatively lower rate as compared to the market.”

NHB will lend to banks & mortgage lenders at 1.50% points less than its prime lending rate, which will work out to about 8.5%. Now, banks are lending at 11.5 per cent.

Rs. 10 lakh to Rs. 15 lakh ..!

With a credit guarantee cover from the ministry of housing, banks will be in a position to lend at about 9.25%.

NHB expects that the huge demand for low-income housing will prompt builders to offer houses in the Rs. 10 lakh to Rs. 15 lakh range on the outskirts of cities and towns.
Share:

No comments:

Post a Comment

Popular Posts

Blog Archive

Recent Posts

Featured Post

BSE releases list of 25 stocks available for T+0 settlement starting March 28, 2024

BSE releases list of 25 stocks available for T+0 settlement starting March 28, 2024