NHB(ND)/ROD/HFC/LRS/04/2003

September 10, 2003

<< To all Housing Finance Companies >>

Dear Sir

Refinance Scheme as applicable to Housing Finance Companies, 2003

1. Kindly refer to our circular no. NHB(ND)/ROD/HFC/LRS/02/2003 dated June 04, 2003.

2. Taking into consideration general increase in the cost of inputs required for acquisition/ major repairs/ up-gradation of existing dwelling units, it has been decided to increase the ceiling on loan slabs under Golden Jubilee Rural Housing Refinance Scheme (GJRHRS) which are eligible for refinance from the existing ceiling of Rs.5.00 lakhs to Rs.10.00 lakhs per individual.

3. Accordingly, the reduction in interest rates by 25 basis points with reference to the applicable rates of each Housing Finance Companies, which was earlier available for loans upto Rs.5 Lakh, will now apply on refinance in respect of housing loan upto Rs.10 Lakhs claimed under the Golden Jubilee Rural Housing Refinance Scheme.

4. Further, the refinance assistance under the scheme (including GJRHRS), which was earlier available for the repayment period from 2-15 years has now been made available for repayment period below 2 years also. It is clarified that interest rate (fixed) on refinance assistance as applicable for the repayment period from 2-5 years for each HFC will now be applicable on refinance for repayment period from 0-5 years.

5. The revised application for drawing refinance from NHB (NHB-ROD[HFC]-02) incorporating the above changes for drawing refinance under GJRHRS and the normal scheme, is enclosed which may be used henceforth while drawing any claim from us. Kindly note that separate application form, as per the given format, is required to be submitted for drawing refinance under GJRHRS and under the normal scheme. Further, separate claim forms will be used for a given option of repayment period and interest rate (fixed/floating), for each refinance application.

6. All other provisions of the scheme shall remain unchanged.

7. Kindly acknowledge receipt.
Yours faithfully,
Sd/-
Deputy General Manager
Refinance Operations Department

Encl. NHB-ROD[HFC]-02.

NHB-ROD[HFC]-02

FORMAT OF APPLICATION FOR DRAWING REFINANCE

To

Refinance Operations Department,

National Housing Bank,

Core 5A, India Habitat Centre,

Lodi Road, New Delhi-110 003.

Dear Sir,

Refinance Assistance to Housing Finance Companies for their lending for Housing

Loan size for which refinance is being claimed [tick (√) any one option]
(a) Loans upto Rs.10 lakhs given in rural areas and eligible for refinance under Golden Jubilee Rural Housing Refinance Scheme, 1997
(b) Loans upto Rs.10 lakh other than (a)
(c) Loans above Rs.10 lakh and upto Rs.1 crore
Interest rate (for Fixed rate write Fx and for Floating rate write Fl)
(Please fill up the empty box clearly)

....... (Name of HFC) has been sanctioned refinance limit of Rs... for the year 200..-.. (July to June) out of which an amount of Rs.... has already been availed by us.

* 2(a). The aggregate amount of housing loans outstanding in our books as on .... is Rs. ..... of which refinance of Rs. ..... is being claimed in respect of loans outstanding on .... accounts.
OR

* 2(b). Out of the balance refinance limit, Rs.. may be released. This will be used for disbursing prospective housing loans. We undertake that all amounts drawn by us will be backed by individual housing loans within a period of three months from the date of release by NHB.

3. The above amount may be released for a period of .... (upto 15) years.

4. We further undertake that:
a) All information/statements as may be required by NHB from time to time shall be submitted promptly.

b) The housing loans granted/to be granted to the constituents have been/will be utilised by them for the purpose for which the loans have been granted.

c) The housing loans covered under NHB refinance are classified as Standard Assets as defined under HFC (NHB) Directions, 2001 and has not been financed/refinanced by any bank/institution.

d) The loan disbursed in rural areas for which refinance is being sought under the Golden Jubilee Rural Housing Refinance Scheme has been properly classified.

e) The refinance sought is in respect of housing loans granted as per the eligibility criteria prescribed under the captioned scheme and the proposal conforms to the general policy and principles laid down and communicated to us from time to time, by NHB.

f) We will properly identify all loans for which financial assistance is obtained from NHB and maintain a list of all such loans. All information pertaining to such accounts will be kept up-to-date. Individual housing loans once flagged against NHB's refinance will never be changed without prior sanction of NHB as long as they are in the books of HFC and they will be distinctly identifiable. List of such book debts would be submitted to NHB on demand.

5. We undertake to repay the refinance as per the repayment schedule furnished by NHB.

6. The refinance amount may please be paid in to our current account No. _____ maintained with _______________________________ [Name of the Bank/Branch/Place]

Yours faithfully

Place:
Date:

Authorised Signatory

* fill up one of these
Note
1. Separate applications are required for refinance of loans upto Rs.10 lakh under Golden Jubilee Rural Housing Refinance Scheme, loans upto Rs. 10 lakh and loans above Rs.10 lakh.

2. Separate applications are required for refinance on floating and fixed rate of interest and for different repayment period.

3. Separate applications are required for refinance in respect of existing loans and prospective loans.

4. Rural area is the area comprised in any village including the area comprised in any town, the population of which does not exceed 50,000 as per the 1991 census.