National Housing Bank - Refinance Schemes As applicable to Housing Finance Companies and Banks Refinance Schemes • Liberalized Refinance Scheme • Golden Jubilee Rural Housing Refinance Scheme (GJRHRS) • Rural Housing Fund (RHF) • Energy Efficient Housing Refinance Scheme (EEHRS) Refinance Schemes for Affordable Housing • Special Refinance Scheme for Urban Low Income Housing (LIH) • Refinance Scheme for Construction Finance for Affordable Housing • Refinance Scheme for Installation of Solar Equipments in Homes • Urban Housing Fund (UHF) Low Income Housing Main features of the scheme : • Availability of long term funds • Concessional rates of interest • Refinance at fixed rates • Available for urban areas on pan India basis • Operated through wide range of primary lending institutions Low Income Housing • Scheme applicable to HFCs, Banks & other PLIs • Loans sanctioned and disbursed on or after 01-012012 • Loan size - Upto Rs.10 lakhs • Location - Urban / semi urban • Tenure - 5 years to 15 years (Co-terminus with average residual tenure of pool included in claim) • Borrowers having annual household income of upto Rs.2 lakhs • Interest rate fixed for full tenure Low Income Housing On-lending Cap (%) Size of individual loans for which refinance is claimed Rate of Interest (%) ≤ Rs. 5 lakhs 8.25 11.00 10.75 > Rs. 5 lakhs and ≤ Rs. 10 lakhs 8.50 11.25 11.00 Without Mortgage Guarantee With Mortgage Guarantee LIH - Household Income • Household income for the purpose of this Scheme shall mean the income of all the coborrowers taken together. • Income shall be assessed / verified by the PLIs to their satisfaction and recorded as such in their credit notes / loan files covering parameters like IIR, LTV, etc. assessing credit worthiness and affordability of the borrowers. Construction Finance for Affordable Housing • The Scheme will provide refinance assistance to HFCs and Banks in respect of their loans extended to public agencies, private agencies / developers / builders for their affordable housing projects. • Public agencies includes Housing Boards, Development Authorities, Slum Improvement / Clearance Board, Improvement Trust etc. Construction Finance Eligible Developers • Company registered under the Companies Act with minimum 5 years experience • The tenure of the refinance under the Scheme will be co-terminus with the PLI’s loan to the agency subject to maximum tenure of 5 years. • Long term debt equity ratio of the agency not to exceed 2:1 as per the latest annual audited accounts Construction Finance Eligible Projects • Projects with at least 60% of the permissible FSI for units of carpet area upto 60 m2 and cost of the unit (having carpet area upto 60 m2) not exceeding 30 lakhs per unit; • Promoter’s contribution - minimum 20% of project outlay • Minimum asset coverage of 1.33:1 based on market/ book value of the project whichever is lower; as certified by a valuer (applicable to private agencies). Solar Lighting & Heating Scheme • The National Urban Housing and Habitat Policy, 2007, has emphasized on the need for energy conservation in the housing sector. • 40% of the total power consumption in the country is on account of domestic household consumption. • The JNNSM is a major initiative of the Government of India to promote ecologically sustainable growth through increased use of solar energy. Solar Lighting & Heating Scheme Main features of the scheme : • Refinance for loans extended for purchase and installation of solar powered devices for household use • Availability of long term funds • Concessional rates of interest at fixed rates • Operated through wide range of primary lending institutions Solar Lighting & Heating Scheme • Purpose - To provide refinance assistance in respect of loans extended by PLIs for : • purchase and installation of solar water heating systems • purchase and installation of solar lighting systems in homes Solar Lighting & Heating Scheme • Loans sanctioned and disbursed on or after 01-07-2012 • Loan size - Upto Rs.50,000 • Location – Rural/Urban • Tenure - 3 years to 7 years (Fixed) • Ultimate borrowers - Any Solar Lighting & Heating Scheme • Interest rates • Where loan is given to weaker sections in rural areas, RHF rates will apply as : Institution ROI (%) RRBs 6.50 Others 7.00 • In other cases, card rates specified under the solar scheme will apply as : Institution ROI (%) RRBs 7.50 Others 8.00 Urban Housing Fund • In the Union Budget 2013-14, the Hon'ble Finance Minister has made an announcement regarding the establishment of an Urban Housing Fund • It was proposed to set up the Urban Housing Fund of Rs. 2000 cr.