Sir,

Refinance Assistance for Housing in the Tsunami Affected Areas

As you are aware, Tsunami tidal waves of extraordinary intensity have caused serious damage to life and property in several coastal areas of the country. With a view to ameliorating the hardship caused by the devastating tidal waves, NHB has decided to extend Refinance Assistance to Housing Finance Companies in respect of their lending for housing in the affected areas of various states and UTs. The objective of this Refinance Assistance is to encourage construction of new houses/flats as also major repairs (including extension and upgradation) of the existing housing stock in the affected areas. HFCs who have predominant presence in the affected States and UTs by way of their branch network could utilize this Refinance Assistance and assist such persons to have a shelter of their own by extending need-based housing loans to them.

The Refinance Assistance for Tsunami affected areas is under a special dispensation within the overall scope of the ‘Refinance Scheme applicable to Housing Finance Companies, 2003’, and is operational for the loans sanctioned on or after 01-01-2005. HFCs having unutilized documented refinance limits for the year 2004-05 and making disbursements under this dispensation in the affected areas can claim refinance with immediate effect.

A copy of the detailed guidelines in this regard is enclosed.

Kindly acknowledge receipt.

Yours faithfully

General Manager
Refinance Operations

Encl. : As above