Credit Risk Guarantee Fund Trust for Low Income Housing (CRGFTLIH)
In pursuance of the Budget announcements in FY 2010-11 and 2011-12, Ministry of Housing & Urban Poverty Alleviation (MoHUPA), Govt. of India has set up and registered Credit Risk Guarantee Fund Trust for Low Income Housing (CRGFTLIH) on 1st May, 2012 and the same has also been notified by MoHUPA, GoI vide Gazette Notification dated July 7-13, 2012. The Trust has been set up with an objective to ensure increase flow of institutional credit for housing to the EWS/LIG households in urban areas.
Main Features of the Scheme:
- Fund Trust provides Guarantee Cover for low cost housing loan sanctioned and disbursed by the lending institutions without any collateral security and/or third party guarantee for home improvement/acquisition and purchase of new or second hand dwelling unit/construction/extension of an affordable dwelling unit in urban areas.
- Applicable to EWS/LIG segments of the urban areas.
- The Housing Loan to EWS/LIG borrowers up to 5 Lakh given for a housing unit with carpet area not exceeding 430 sq.feet (40 sq.metre.) are eligible to avail guarantee under the scheme.
- The lending institutions eligible to avail benefit of the Guarantee cover under the Scheme of the Fund Trust are Scheduled Commercial Banks, Regional Rural Banks, Urban Co-operative Banks, NBFC-MFIs, Apex Cooperative Housing Finance Societies registered under the State Co-operative Societies Act and Housing Finance Institutions registered with National Housing Bank (NHB).
The benefits available to the lenders and borrowers are as follows:
- Benefits to Lenders
- Capital Relief: Reduction in credit risk leads to reduction in risk weighted assets and hence lesser capital requirement for CRAR.
- Benefits to EWS/LIG Households
- Increased availability and accessibility of institutional loan/credit.
Suggestions are invited from the public for “One Word Representing the Basic objective of the Fund Trust” either in Hindi or English in the box given below:
Selected “One Word” for the CRGFTLIH, will be duly rewarded with (maximum Rs. 5000/-) by CRGFTLIH