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v) Special Liquidity Facility from Reserve Bank of India
The Reserve Bank of India sanctioned Special Liquidity Facility (SLF) of `10,000 crore to
NHB to assist HFCs and other Primary Lending Institutions (PLIs) with affordable and
adequate liquidity to tide over the disruption caused by the COVID 19 pandemic. The
availment of refinance by NHB under this facility is restricted to a period of one year
from the date of first drawal. The total net amount availed under SLF from RBI up to
June 30, 2021, was `7,662 crore.
vi) Foreign Borrowings (AFD Loan)
NHB has an approved borrowing of €100 million and grant of €12 million consisting
of €9 million for the reduction of interest cost and €3 million for the reimbursement of
consultancy charges for NHB SUNREF Housing Program’s technical assistance from
AFD, France under Sustainable Use of Natural Resources and Energy Facility in the
Residential Sector (SUNREF). During the year 2018-19, the Bank had drawn the entire
Line of Credit amount of €100 Million and grant portion of €9 million. CRISIL has been
nominated as the consultant firm in charge of the implementation of NHB-SUNREF
Housing Program’s technical assistance. No fresh foreign borrowing was availed by the
Bank during 2020-21. The total amount outstanding under all of the Foreign Borrowings
as on June 30, 2021, is `1589 crore.
3.2 Refinance
Refinance business of NHB intends to serve a widely diverse market, both in terms of
geography as well as socio-economic segments. NHB has encouraged and incentivized the
PLIs to improve and strengthen the grass root credit delivery network for housing finance
across the country, particularly for the low- and middle-income group segments. These
measures have facilitated the PLIs, especially HFCs in their long-term resources.
The impact of COVID-19 outbreak on economy and financial markets has been dramatic
and severe. Due to the COVID-19 pandemic related lockdown and the moratorium on loan
repayments allowed by RBI, cash flow of HFCs/PLIs were impaired adversely affecting their
ability to meet their liability payment obligations as well as committed disbursements. To
mitigate their liquidity risk and improve the much-needed liquidity in the overall housing
finance system, NHB granted moratorium to PLIs and launched a new scheme named
Special Refinance Facility (SRF) for disbursing an amount of `10,000 crore provided by RBI
under Special Liquidity Facility (SLF) and an amount of `5,000 crore allocated by RBI under
Additional Special Liquidity Facility (ASLF).
NHB partnered with various international development agencies to channelize institutional
credit flow for energy efficient and green housing, low income, and informal income segments,
etc. Refinance schemes introduced by NHB, aimed at supporting and incentivizing the PLIs
have contributed to the evolution of a new housing finance system.
Annual Report 2020-21 | 217
The Reserve Bank of India sanctioned Special Liquidity Facility (SLF) of `10,000 crore to
NHB to assist HFCs and other Primary Lending Institutions (PLIs) with affordable and
adequate liquidity to tide over the disruption caused by the COVID 19 pandemic. The
availment of refinance by NHB under this facility is restricted to a period of one year
from the date of first drawal. The total net amount availed under SLF from RBI up to
June 30, 2021, was `7,662 crore.
vi) Foreign Borrowings (AFD Loan)
NHB has an approved borrowing of €100 million and grant of €12 million consisting
of €9 million for the reduction of interest cost and €3 million for the reimbursement of
consultancy charges for NHB SUNREF Housing Program’s technical assistance from
AFD, France under Sustainable Use of Natural Resources and Energy Facility in the
Residential Sector (SUNREF). During the year 2018-19, the Bank had drawn the entire
Line of Credit amount of €100 Million and grant portion of €9 million. CRISIL has been
nominated as the consultant firm in charge of the implementation of NHB-SUNREF
Housing Program’s technical assistance. No fresh foreign borrowing was availed by the
Bank during 2020-21. The total amount outstanding under all of the Foreign Borrowings
as on June 30, 2021, is `1589 crore.
3.2 Refinance
Refinance business of NHB intends to serve a widely diverse market, both in terms of
geography as well as socio-economic segments. NHB has encouraged and incentivized the
PLIs to improve and strengthen the grass root credit delivery network for housing finance
across the country, particularly for the low- and middle-income group segments. These
measures have facilitated the PLIs, especially HFCs in their long-term resources.
The impact of COVID-19 outbreak on economy and financial markets has been dramatic
and severe. Due to the COVID-19 pandemic related lockdown and the moratorium on loan
repayments allowed by RBI, cash flow of HFCs/PLIs were impaired adversely affecting their
ability to meet their liability payment obligations as well as committed disbursements. To
mitigate their liquidity risk and improve the much-needed liquidity in the overall housing
finance system, NHB granted moratorium to PLIs and launched a new scheme named
Special Refinance Facility (SRF) for disbursing an amount of `10,000 crore provided by RBI
under Special Liquidity Facility (SLF) and an amount of `5,000 crore allocated by RBI under
Additional Special Liquidity Facility (ASLF).
NHB partnered with various international development agencies to channelize institutional
credit flow for energy efficient and green housing, low income, and informal income segments,
etc. Refinance schemes introduced by NHB, aimed at supporting and incentivizing the PLIs
have contributed to the evolution of a new housing finance system.
Annual Report 2020-21 | 217
