RefinanceIssues and Way Forward

Peeyush PandeyManager

National Housing Bank

April 20, 2012

Presentation Structure

Status of Refinance

Policy Changes

Issues and Challenges

Way Forward

Status of Refinance

Refinance Disbursements

8108

12496

Urban - Rural Break-up

8108

11723

12496

Loan Size Wise Break-upJuly 2011 - March 2012

Policy Changes

Initiatives / Products

Introduction of Refinance Scheme for housing loans to borrowers of weaker section (under RHF) [since 01-04-2008]

Refinance Scheme for Energy Efficient Housing [since 01-07-2010]

Extension of refinance under the Rural Housing Fund to the non-contributing Public Sector Banks

Policy relaxations for new HFCs engaged in housing finance in rural areas / for low income segments

Equity support to new HFCs engaged in housing finance in rural areas / for low income segments

Issues & Challenges

PLIs to scale up lending operations o in rural areaso to low income / informal segmentso under Govt. programmes / schemes for

rural housing / affordable housing

Encourage participation in Government schemes for rural / affordable housing to EWS / LIG beneficiaries

Rural Housing Fund

Expanding credit availability Ensuring proper utilization Passing on benefit of low cost funds to

ultimate beneficiaries Strengthening MIS to capture data on

income and other eligibility parameters

Timeliness in submission of information / returns to NHB

Way Forward

Avail at least one-half of the sanctioned limit under RHF / for low income housing

Increasing loan portfolio by taking advantage of Credit Guarantee Fund / loan-cum-subsidy programmes of Government(s)

Indirect finance

Construction finance for affordable housing

Energy Efficient Housing

Sahara City Homes (type A, B, C & D) at Nagpur - 24 - 31%

Sahara City Homes at Lucknow - 32% 3C’s projects at NOIDA - 10 - 16% Hiranandani Palace Gardens at Mumbai -

33% BCIL Zedwood at Bangalore - 31 - 42%