✓ Home Loan from ₹2 Lakhs to ₹15 Crores ✓ Interest Rates Starting @ 8.50% Check Eligibility

National Housing Bank (NHB) is a financial institution incorporated by the Parliament. The Reserve Bank of India got the regulatory powers after the notification in April 2019. 


The notification mentioned details about the capital structure of NHB paid by the Indian Government. NHB India has its headquarters in New Delhi and manages the operational and management activities at the general and business levels.


Read on to learn about the National Housing Bank in detail, its objectives, features, and more.

History of National Housing Bank

During 1985-90, while the Indian Government was working on its 7th five-year plan, it identified the poor condition of long-term finance availability to individuals and households. To overcome this issue, a suggestion to establish national institutions came up. 


As per the suggestion, national-level corporations would work on improving the condition of long-term finance availability to households. For this, the Committee of Secretaries set up a High Level Group under Dr C. Rangarajan to examine the proposal. 


The end recommendation was to establish the National Housing Bank as an autonomous housing finance institution, which the Government of India accepted.

Objectives of NHB

Here are the main objectives of NHB:

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

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

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

  • Looking after risk management and ensuring that housing finance agencies fit the requirements issued under the BASEL norms

Read More

Benefits of NHB

Check out the benefits of NHB:

  • Makes it easy to choose from refinancing possibilities since it's a special institution that focuses on the infrastructure of housing finance

  • 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


NHB RESIDEX is India’s first-ever official residential price index. NHB RESIDEX aims to evaluate property prices in various Indian cities. It 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 NHB housing price index is calculated 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 to increase that to 100. 


It is designed to evaluate the property price changes according to their locations. This is done by a standardised 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.

Government Housing Schemes Under NHB

Under the ‘Housing for All by 2022’ program of the Indian Government, NHB launched two housing schemes:

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 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

Eligibility Criteria for Credit Linked Subsidy Scheme 

CLSS Scheme Type






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





Upfront Subsidy Amount for a 20-Year Loan






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

2. Rural Housing Interest Subsidy Scheme (RHISS)

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.

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. Here are the eligibility criteria for 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


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

National Housing Bank: Contact information

In case of any assistance requirement or query, you can contact the National Housing Board via the below listed details. 



Toll-Free Number

1800-11-3377 /1800-11-3388


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.

FAQs on National Housing Bank (NHB)

Who regulates NHB?

The Reserve Bank of India regulates and operates the National Housing Bank in India.

How do I get an NHB subsidy?

You must qualify the eligibility parameters of Credit Linked Subsidy Schemes to get the benefits of the NHB subsidy.

Who owns the National Housing Bank?

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.

Loan Offer
Download App