National Housing Board

National Housing Bank (NHB)

All you need to know about the National Housing Bank (NHB)

✓ Home Loan from ₹5 Lakhs To ₹5 Cr ✓ Multiple Lending Partners ✓ Attractive Interest Rates

 

National Housing Bank (NHB) is a financial institution incorporated by the Parliament and  is entirely owned and controlled by the Government of India after the notification sent by RBI in April 2019. The notification mentioned details about the capital structure of NHB which was paid by the Indian Government. NHB India is headquartered in New Delhi. The National Housing Board manages the operational and management activities at the general and business levels.

Background of National Housing Bank

During 1985-90, while the Government of India was working on its 7th five-year plan, it identified the issue of the poor condition of long-term finance availability to individuals and households. To overcome this issue, a suggestion to establish national institutions came up. These national-level corporations would work on improving the condition of long-term finance availability to households. Consequently, a Committee of Secretaries was also set up and was headed by Dr C. Rangarajan. It was the recommendation of this committee that the National Housing Bank should be established.

National Housing Bank: Contact information 

In case of any assistance requirement or query, you can contact the National Housing Board -

 

  • Email: clssim@nhb.org.in

  • Toll-Free Number: 1800-11-3377 /1800-11-3388

Objectives of NHB

The main objectives of NHB National Housing Bank are -

 

  • Set up a reliable, low-cost, and healthy housing finance system to fulfil the requirements of every individual.

  • Proper integration of the NHB Housing Finance System with the country’s overall finance system.

  • Create a network of housing finance agencies and keep a check on their activities.

  • Management of required resources for the network and investing them in the housing sector.

  • Promotion of affordable housing credit.

  • Gather more and more public institutions that can work as suppliers for serviced land.

Functions of NHB

Apart from the Housing Finance System,  NHB also looks after the following objectives -

 

  • Promotion of a special network for housing finance agencies on the basis of different locations and income levels.

  • Promotion of affordable housing credit.

  • Working on increasing the supply of land for the construction of buildings and also material required for the same.

  • Gather more public institutions that can work as suppliers for serviced land.

  • Looking after risk management.

  • Ensuring that housing finance agencies fit the requirements issued under the BASEL norms.

Benefits of NHB

Check out the benefits of NHB housing - 

 

  • A special institution focusing on the infrastructure of housing finance, making it easy to choose from the refinancing possibilities. 

  • National Housing Bank acts as a guaranteeing agency for small finance companies that are not able to raise enough funds.

  • Helps in providing expert advice in the underwriting of housing finance.

  • Promotion of housing stock creation and construction of new houses.

What is NHB RESIDEX?

Launched in 2017, NHB RESIDEX is India’s first-ever official residential price index. NHB RESIDEX aims to evaluate the prices of properties in various cities of the country. The index was taken down in 2015 and then relaunched in 2017 with updated evaluation strategies and 2012-13 as the base year to map prices.

 

The calculation of the NHB housing price index is done quarterly, which started in April-June with 2013 as the base. In April-June 2018, the base year was changed to 2017. Currently, NHB has around 50 housing markets registered under it and it aims at increasing the number to 100. The index is designed to evaluate the price changes of properties according to their locations. This is done by a standardized tool to track the demand for housing in various cities. It is also very beneficial for home buyers, as it helps to compare the prices of different properties at different locations.

 

NHB RESIDEX possesses updates about the under-constructed property prices in 50 cities at both assessment price and market rates. These prices are based on the information collected from the builders, brokers and developers. The NHB housing prices are further divided into three sections, based on carpet size (city-level) - less than 60 sq meters, between 60 sq meters to 110 sq meters and lastly more than 110 sq meters.

Government Housing Schemes Under NHB

Under the Housing for All by the 2022 program of the Indian Government, NHB housing launched two housing schemes, i.e -

1. Pradhan Mantri Awas Yojana (PMAY)

Launched in 2015 by the Indian Prime Minister, Mr. Narendra Modi, the PMAY scheme aims at providing low-cost housing to poor individuals in urban areas. The scheme also focuses on facilitating the houses with basic facilities like water supply, toilets and full-time power supply. This scheme falls under the category of Credit Linked Subsidy Schemes.

The main features and benefits of PMAY are -

 

  • The benefit of interest subsidy of 6.5% or below.

  • It is mandatory to get the construction design of buildings approved before construction begins.

  • The accommodation on the ground floor of the building should be compulsorily given to senior citizens and individuals who are differently-abled.

  • Encouraging women to have right over ownership fully or in partnership.

Eligibility Criteria for Credit Linked Subsidy Scheme 

CLSS Scheme Type

EWS/LIG

MIG - I

MIG - II

Loan Purpose

Self Construction/Purchase/Extension

Self Construction/Purchase

Self Construction/Purchase

Income

Rs. 3 - 6 Lakhs

Rs. 6 -12 Lakhs

Rs. 12 - 18 Lakhs

Maximum Carpet Area

60 sqm

160 sqm

200 sqm

Loan Amount for Subsidy Calculation

Rs. 6 Lakhs

Rs. 9 Lakhs

Rs. 12 Lakhs

Interest Subsidy

6.50%

4.00%

3.00%

Maximum Subsidy

Rs. 2.67 Lakhs

Rs. 2.35 Lakhs

Rs. 2.30 Lakhs

Validity

March 31, 2022

March 31, 2020

March 31, 2020

Women Ownership

Mandatory

Not Mandatory

Not Mandatory

PMAY Eligibility Criteria

  • The ownership of the house should be either fully owned by the female head of the family or jointly by the male and female head.

  • Any member of the beneficiary family should not own any ‘pucca house’ in any location of the country.

  • For married couples, either one of the spouses or both together are eligible for one single subsidy.

  • The family should have obtained any assistance under any other housing scheme by the Indian Government.

Check detailed PMAY Eligibility Criteria

Details

  • In the case of the MIG category, the Aadhaar card of the family members is mandatory.

  • Interest benefits will be offered for either 20 years or for the loan term, whichever is less.

  • If there is any additional loan outside the fixed limits, it will be calculated on a non-subsidised rate.

  • No limitation on the property cost or loan amount is fixed by the government.

2. Rural Housing Interest Subsidy Scheme (RHISS)

RHISS was established with the goal of providing pucca houses to all the families living in kutcha houses or who don’t have one by 2022. It also works on providing help to households in the construction, improvement and repairing of existing houses in rural areas.

RHISS Eligibility Criteria 

  • According to RHISS, any rural family that is not a part of the permanent wait list for PMAY, will be eligible as a beneficiary.

Details

Particulars

RHISS

Interest Subsidy

3% p.a.

Maximum Loan Tenure

20 years

Minimum Eligible Loan Amount to get Subsidy

Rs. 2 Lakhs

Rate of Discount for NPV Calculation of Interest Subsidy

9%

  • If there is any additional loan outside the fixed limits, it will be calculated on a non-subsidised rate.

  • At the beginning of the scheme, CNA (Central Nodal Agency) will get subsidy payment in advance. The further required funds will be released after the 70% utilization of the previous funds.

    Conclusion

    The NHB and its maiden housing scheme, Pradhan Mantri Awas Yojana, can help you turn your dream of becoming a homeowner into a reality. What’s more, you can avail the benefits of this housing scheme through a home loan that you apply for, on Bajaj Markets.

National Housing Board FAQs

  • ✔️Who regulates NHB?

    The Ministry of Finance of the Indian Government regulates and operates the National Housing Bank in India.

  • ✔️How do I get an NHB subsidy?

    The applicant must qualify the eligibility parameters of Credit Linked Subsidy Schemes to avail of the benefits of the NHB subsidy.

  • ✔️How do I check the status of my NHB?

    You can easily check your NHB housing status by following the below-mentioned steps -

    • Visit the official website of NHB.

    • Click on ‘Citizen Assessment’ visible on the home page.

    • Then tap on ‘Track Your Assessment Status’.

    • A form will appear where you will have to fill in details like Mobile Number, Assessment ID, etc.

    Submit the form and the NHB housing current status will be displayed.

  • ✔️Who owns National Housing?

    The National Housing Bank is wholly owned and operated by the Reserve Bank of India.

  • ✔️When was the NHB established?

    The National Housing Bank was established on 9th July 1988.

  • ✔️When did the RBI take over the NHB as the housing finance regulator?

    In November 2019, RBI took over the National Housing Bank by issuing a notification regarding its entire capital pay.

  • ✔️What financial year does the NHB follow?

    NHB has the financial year from July to June of next year.