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Understand the role of the National Housing Bank (NHB), its functions, housing schemes, NHB RESIDEX, and its contribution to India’s housing finance sector.
Last updated on: Aug 11, 2026
The National Housing Bank (NHB) is a statutory financial institution established to promote housing finance institutions and support affordable housing development in India. Commonly referred to as the NHB bank, it works towards strengthening the housing finance system and improving the availability of long-term housing credit across different income groups.
Established under the National Housing Bank Act, 1987, NHB plays an important role in regulating housing finance companies (HFCs), supporting refinancing activities, promoting government-backed housing schemes, and monitoring housing price trends through NHB RESIDEX. The institution also contributes to policy implementation related to affordable housing and housing finance reforms in India.
The National Housing Bank (NHB) is a specialised financial institution established by the Government of India to regulate and promote housing finance activities in the country. It was set up on 9th July 1988 under the National Housing Bank Act, 1987.
Initially promoted by the Reserve Bank of India (RBI), NHB works towards improving housing finance accessibility and supporting the growth of the housing sector. It also supervises housing finance companies and assists in implementing government housing initiatives.
| Particulars | Details |
|---|---|
Full Name |
National Housing Bank |
Established |
9 July 1988 |
Headquarters |
New Delhi, India |
Regulatory Authority |
Reserve Bank of India |
Governing Act |
National Housing Bank Act, 1987 |
Primary Role |
Housing finance regulation and promotion |
Key Focus Area |
Affordable housing and housing finance development |
The idea of establishing NHB emerged during India’s Seventh Five-Year Plan when the government identified the limited availability of long-term housing finance for individuals and households. To address this issue, a High-Level Group under Dr C. Rangarajan examined the proposal for creating a dedicated housing finance institution.
Based on the recommendations, the Government of India established the National Housing Bank as an autonomous apex institution for housing finance. Over the years, NHB expanded its role from refinance support to supervision of housing finance companies and implementation of housing-related schemes.
| Year | Development |
|---|---|
1987 |
National Housing Bank Act passed |
1988 |
NHB officially established |
2000s |
Expansion of housing refinance and supervision activities |
2015 |
Involvement in PMAY-related housing initiatives |
2019 |
RBI became the regulator for Housing Finance Companies |
The National Housing Bank works towards developing a stable and efficient housing finance system in India. Its major objectives include:
Promoting a healthy and cost-effective housing finance system across the country
Supporting affordable housing development for different income groups
Improving the integration of housing finance with the broader financial system
Regulating and supervising housing finance institutions
Expanding the availability of long-term housing credit
Promoting resource mobilisation for housing sector development
Supporting risk management and financial stability in housing finance
Encouraging balanced regional growth in housing finance services
The National Housing Bank performs several important functions within India’s housing finance ecosystem.
NHB supervises and monitors housing finance companies to ensure compliance with financial regulations and housing finance standards.
The institution provides refinance assistance to eligible housing finance institutions and lenders to improve credit availability for home loans.
NHB supports affordable housing initiatives and government-backed schemes aimed at increasing home ownership opportunities.
The institution contributes to policy development, research, housing market analysis, and financial sector reforms related to housing finance.
NHB publishes housing price data and indices such as NHB RESIDEX to track property price movements across cities.
The National Housing Bank indirectly benefits home loan borrowers through policy support, refinance activities, and affordable housing initiatives.
Improves access to housing finance across income groups
Encourages affordable housing development
Supports lower-cost housing finance availability through refinancing
Promotes financial stability in the housing finance sector
Helps strengthen regulation of housing finance companies
Assists implementation of housing subsidy schemes
NHB RESIDEX is India’s official residential housing price index developed by the National Housing Bank. It helps measure changes in residential property prices across different cities and housing markets.
The index was first launched in 2007 and later revised with updated methodologies and base years. NHB RESIDEX tracks housing market trends using property transaction and valuation data.
| Feature | Details |
|---|---|
Purpose |
Tracks residential property price changes |
Developed By |
National Housing Bank |
Coverage |
Multiple cities across India |
Frequency |
Periodic housing price updates |
Benefit |
Helps analyse housing market trends |
NHB RESIDEX assists policymakers, lenders, developers, and home buyers in understanding property market movements and housing demand conditions.
The National Housing Bank regulates and supervises several housing finance companies operating in India. These institutions provide home loans, affordable housing finance, and related lending services.
| Housing Finance Company | Type |
|---|---|
LIC Housing Finance |
Housing Finance Company |
PNB Housing Finance |
Housing Finance Company |
Note: The list of regulated HFCs may change over time based on regulatory approvals and market developments.
Under the ‘Housing for All by 2022’ program of the Indian Government, NHB launched two housing schemes:
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 providing 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 Pradhan Mantri Awas Yojana (PMAY) is divided into 2 types based on the focused area:
Pradhan Mantri Awas Yojana Gramin
Pradhan Mantri Awas Yojana Urban
| CLSS Scheme Type | EWS | LIG | MIG - I | MIG - II |
|---|---|---|---|---|
Income |
Up to ₹3 Lakhs |
₹3-6 Lakhs |
₹6-12 Lakhs |
₹12-18 Lakhs |
Maximum Carpet Area |
30 sqm |
60 sqm |
160 sqm |
200 sqm |
Loan Amount for Subsidy Calculation |
₹6 Lakhs |
₹6 Lakhs |
₹9 Lakhs |
₹12 Lakhs |
Interest Subsidy |
6.50% |
6.50% |
4.00% |
3.00% |
Upfront Subsidy Amount for a 20-Year Loan |
₹2,67,280 |
₹2,67,280 |
₹2,35,068 |
₹2,30,159 |
Validity |
March 31, 2020 |
March 31, 2020 |
March 31, 2020 |
March 31, 2020 |
Disclaimer: Aforementioned specifics may change at the discretion of the government.
In the case of the MIG category, the Aadhaar card of the family members is mandatory
Interest benefits are offered for either 20 years or for the loan term, whichever is less
For any additional loan outside the fixed limits, the calculation is done on a non-subsidised rate
There is no limitation on the property cost or loan amount by the government
RHISS was established with the goal of providing pakka 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 repair of existing houses in rural areas.
According to RHISS, any rural family that is not a part of the permanent wait list for PMAY will be eligible as a beneficiary. Here are the eligibility criteria for RHISS:
| Particulars | RHISS |
|---|---|
Interest Subsidy |
3% p.a. |
Maximum Loan Tenure |
20 years |
Eligible Loan Amount to Get Subsidy |
₹2 Lakhs |
Rate of Discount for NPV Calculation of Interest Subsidy |
9.00% |
Disclaimer: Aforementioned specifics can vary at the discretion of the government.
For any additional loan outside the fixed limits, the calculation is done on a non-subsidised rate
At the beginning of the scheme, Central Nodal Agency (CNA) will get subsidy payments in advance
Subsidy funds will be released after the 70% utilisation of the previous funds
Under the NHB refinance scheme, eligible financial institutions receive refinance assistance to support housing loan disbursements.
Improves liquidity for housing finance institutions
Supports expansion of housing loan portfolios
Encourages affordable housing lending
Improves housing loan accessibility
Supports affordable housing initiatives
Helps strengthen housing finance availability in underserved regions
Borrowers facing issues with housing finance companies may file complaints through the concerned HFC’s grievance mechanism or regulatory channels.
Contact the customer support or grievance officer of the HFC
Submit the complaint with supporting documents
Wait for the response within the prescribed timeline
If unresolved, escalate the complaint through regulatory grievance channels
Maintain records of complaint references and communications
For assistance related to NHB schemes, housing finance information, or subsidy-related queries, users may contact NHB through the following details.
| Contact Method | Details |
|---|---|
clssim@nhb.org.in |
|
Toll-Free Numbers |
1800-11-3377 / 1800-11-3388 |
Headquarters |
New Delhi, India |
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.
Reviewer
The Reserve Bank of India regulates the National Housing Bank and oversees the broader housing finance regulatory framework in India.
Eligible borrowers may receive benefits under housing schemes such as PMAY and CLSS through participating lenders and housing finance institutions.
The National Housing Bank is wholly owned by the Government of India.
The National Housing Bank was established on 9th July 1988 under the National Housing Bank Act, 1987
In 2019, the Reserve Bank of India became the regulator for housing finance companies after regulatory changes introduced by the Government of India.
NHB generally follows the financial year period applicable to government financial institutions in India.
NHB is a regulatory and refinancing institution, while Housing Finance Companies directly provide home loans and housing finance services to borrowers.
NHB RESIDEX helps home buyers analyse residential property price trends across different cities and housing markets in India.
No, NHB does not directly provide home loans to individual borrowers. Housing loans are offered through banks and housing finance companies regulated by relevant authorities.
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