NHB(ND)/ROD/HFC/LRS/08/2004
Dated April 22, 2004

To all eligible HFCs

As you are aware NHB has introduced Liberalised Refinance Scheme for HFCs in February 2003 and an information brochure relating to various facets of the scheme was sent to you vide our letter no. NHB(ND)/ROD/HFC/LRS/01/2003 dated February 20, 2003. In this context, some minor procedural issues in the Information Brochure now stand modified as given below:

(i) Definition of NOF and capital employed - Para 2 (2.3 and 2.4) – It is reiterated that computation of ‘NOF’ and ‘capital employed’ of HFC shall be followed as per Housing Finance Companies (NHB) Directions, 2001. The reference of ‘NOF’ and ‘capital employed’ to be reported in Annual Information Format NHB-ROD(HFC)-08 or any other place should be strictly adhered in accordance .

(ii) Borrowing from Institutions other than NHB (para 9.2 ) The requirement of seeking Block NOC along with the submission of application for seeking annual refinance limit ( July-June) has been de-linked. HFCs may now submit the above applications separately for seeking block NOC and annual refinance limit by furnishing the necessary details depending upon the requirement. Further, the requirements for seeking NOC in respect of HFCs’ borrowings will remain unchanged; details of which are given under para 9.2 of the Information Brochure.

(iii) Para 9.2 (d) - The date of submission of half-yearly information as per format NHB-ROD(HFC)-05 will be one month from the end of the half-year . The necessary changes in the para for submission of information i.e., from ‘fortnightly’ to ‘one month’ from the end of the half-year may be incorporated.


The above modifications/changes may be incorporated in the Information Brochure with you for record and future reference.

The other provisions of the scheme, save periodic changes in interest rate, remain unchanged.

Kindly acknowledge.

-sd-
(R. Rajagopalan)
General Manager