Page 241 - NHB AR 2020-21-3 complete- Print (1)
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along with interest falling due between March 1, 2020, and May 31, 2020. In view of the
extension of lockdown and continuing disruption on account of COVID-19, Reserve Bank of
India permitted Financial Institutions to extend the moratorium by another three months i.e.
from June 1, 2020 to August 31, 2020 and NHB extended the moratorium by another three
months i.e. for instalments due between July 1, 2020 and 31 August, 2020. Three Housing
Finance Companies (HFCs) have been granted moratorium for instalments due between July
1, 2020 and 31 August, 2020. These Housing Finance Companies have paid the demand due
as on October 1st, 2020 i.e. at the end of the moratorium period.
3.2.8 Revision in Refinance Scheme for Construction Finance for Affordable Housing
To simulate demand for credit for Affordable housing, Refinance Scheme for Construction
Finance for Affordable Housing has been revised. The Scheme has been revised considering the
prevalent conditions in the housing finance sector. The focus of the Scheme is on small projects
mainly because they are expected to be delivered faster and the sales velocity will be high and
mainly present in the suburbs of the metropolitan cities or in Tier-II and Tier-III cities. Also,
these projects are expected to cater to the segments that fall under EWS/LIG or MIG households.
Primary Lending Institutions were sensitized to create awareness about the Scheme.
3.3 Project Finance
National Housing Bank extends loans and advances to eligible entities for residential housing
projects under section 14(ba) of the National Housing Bank Act, 1987. Since inception, the
Bank has taken various initiatives under the project finance window with an endeavour to
facilitate the increase in overall housing stock in the country with special emphasis on the
housing needs of the Economically Weaker Sections (EWS) and Low Income Group (LIG)
segments. Initially, NHB had extended financial assistance for land development and shelter
projects (LDSP) and housing infrastructure undertaken by Housing Boards, Development
Agencies and Co-operative Housing Societies under its refinance window. Subsequently,
the Slum Improvement and Low-Cost Housing Fund was established in NHB for project
finance under the Voluntary Deposits (Immunities and Exemptions) Act, 1991. The said Fund
has been used for financing slum clearance projects, low-cost housing projects for the poor,
construction of houses for people affected by natural calamities etc. along with project finance
through general fund.
The financial assistance under the project finance window is extended to various public
agencies like State Housing Boards, State Slum Clearance Boards/Authorities, Development
Authorities, Municipal Corporations and Urban Local Bodies etc. for undertaking residential
housing projects. The financial assistance has been extended to commercially viable projects
in accordance with the Bank’s policy and the RBI guidelines.
Annual Report 2020-21 | 221
extension of lockdown and continuing disruption on account of COVID-19, Reserve Bank of
India permitted Financial Institutions to extend the moratorium by another three months i.e.
from June 1, 2020 to August 31, 2020 and NHB extended the moratorium by another three
months i.e. for instalments due between July 1, 2020 and 31 August, 2020. Three Housing
Finance Companies (HFCs) have been granted moratorium for instalments due between July
1, 2020 and 31 August, 2020. These Housing Finance Companies have paid the demand due
as on October 1st, 2020 i.e. at the end of the moratorium period.
3.2.8 Revision in Refinance Scheme for Construction Finance for Affordable Housing
To simulate demand for credit for Affordable housing, Refinance Scheme for Construction
Finance for Affordable Housing has been revised. The Scheme has been revised considering the
prevalent conditions in the housing finance sector. The focus of the Scheme is on small projects
mainly because they are expected to be delivered faster and the sales velocity will be high and
mainly present in the suburbs of the metropolitan cities or in Tier-II and Tier-III cities. Also,
these projects are expected to cater to the segments that fall under EWS/LIG or MIG households.
Primary Lending Institutions were sensitized to create awareness about the Scheme.
3.3 Project Finance
National Housing Bank extends loans and advances to eligible entities for residential housing
projects under section 14(ba) of the National Housing Bank Act, 1987. Since inception, the
Bank has taken various initiatives under the project finance window with an endeavour to
facilitate the increase in overall housing stock in the country with special emphasis on the
housing needs of the Economically Weaker Sections (EWS) and Low Income Group (LIG)
segments. Initially, NHB had extended financial assistance for land development and shelter
projects (LDSP) and housing infrastructure undertaken by Housing Boards, Development
Agencies and Co-operative Housing Societies under its refinance window. Subsequently,
the Slum Improvement and Low-Cost Housing Fund was established in NHB for project
finance under the Voluntary Deposits (Immunities and Exemptions) Act, 1991. The said Fund
has been used for financing slum clearance projects, low-cost housing projects for the poor,
construction of houses for people affected by natural calamities etc. along with project finance
through general fund.
The financial assistance under the project finance window is extended to various public
agencies like State Housing Boards, State Slum Clearance Boards/Authorities, Development
Authorities, Municipal Corporations and Urban Local Bodies etc. for undertaking residential
housing projects. The financial assistance has been extended to commercially viable projects
in accordance with the Bank’s policy and the RBI guidelines.
Annual Report 2020-21 | 221
