National Housing Bank and developments in Kochi

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The National Housing
Bank has been set up under the National Housing Bank Act, 1987 as an
apex institution to promote housing finance institutions both at
local and regional levels and to provide financial and other support
to such institutions.  The National Housing Bank (NHB) is keen
that not only more Housing Finance Companies (HFCs) should come up,
but also that they should be sound, healthy, viable and cost
effective.

The NHB at present
supports the activities of HFCs in the private and joint sectors in
three major ways:
a.             
Equity participation to the extent of 20 percent of their paid-up
capital
b.             
Cent-percent refinance in respect of 

i)        
  Housing loans up to Rs.1 lakh for built-up accommodation
up to 40 sq m and 

ii)      
  Housing loans up to Rs. 30,000 for up gradation and major
repairs.
c.             
Ad hoc financial assistance to meet short-term gaps in resources

The leading
 Builders in Kochi  have
tasted success only due to the liberalized attitude of the housing
finance institutions.  Just like the role played by the National
Bank for Agriculture and Rural Development (NABARD) in assisting the
banks and other financing institutions to manage their book of
accounts, the NHB has been active in the housing development sector.

The NHB came to the
rescue of almost all the major financing institutions that gave loans
to the various housing cooperatives.  The leading builders
however, never defaulted in loan repayments mainly due to the
phenomenal profits generated by them in the hot Kochi real estate
market.  Even before the building works commenced in some of the
real estate projects in the prominent localities in the city, the
entire apartment units being put up for sale has been sold out in
record time.

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Laramie Members Profile Send Private Message Find Members Posts Add to Buddy List Outsider Joined: Feb 07 2011 Status: Offline Points: 1	Post Options Post Reply Quote Laramie Report Post Thanks(0) Quote Reply Topic: National Housing Bank and developments in Kochi Posted: Feb 07 2011 at 10:59pm
	< ="-" ="text/; =utf-8">< name="GENERATOR" ="Office.org 3.2 Win32">< ="text/"> The National Housing Bank has been set up under the National Housing Bank Act, 1987 as an apex institution to promote housing finance institutions both at local and regional levels and to provide financial and other support to such institutions. The National Housing Bank (NHB) is keen that not only more Housing Finance Companies (HFCs) should come up, but also that they should be sound, healthy, viable and cost effective. The NHB at present supports the activities of HFCs in the private and joint sectors in three major ways: a. Equity participation to the extent of 20 percent of their paid-up capital b. Cent-percent refinance in respect of i) Housing loans up to Rs.1 lakh for built-up accommodation up to 40 sq m and ii) Housing loans up to Rs. 30,000 for up gradation and major repairs. c. Ad hoc financial assistance to meet short-term gaps in resources The leading Builders in Kochi have tasted success only due to the liberalized attitude of the housing finance institutions. Just like the role played by the National Bank for Agriculture and Rural Development (NABARD) in assisting the banks and other financing institutions to manage their book of accounts, the NHB has been active in the housing development sector. The NHB came to the rescue of almost all the major financing institutions that gave loans to the various housing cooperatives. The leading builders however, never defaulted in loan repayments mainly due to the phenomenal profits generated by them in the hot Kochi real estate market. Even before the building works commenced in some of the real estate projects in the prominent localities in the city, the entire apartment units being put up for sale has been sold out in record time.