Financing is one of the major activities of the National Housing Bank. NHB extends financial support through refinance and direct finance to a large set of lending institutions.
Refinance is extended to primary lending institutions (PLIs) in respect of eligible housing loans extended by them to individual borrowers. Refinance is provided under its various schemes which cater to all segments of the population in both rural and urban areas.
The PLIs include HFCs, scheduled commercial banks, scheduled state cooperative banks, scheduled urban cooperative banks, Small Finance Banks, Regional Rural Banks, Apex Cooperative Housing Finance Societies (ACHFs) and Agriculture and Rural Development Banks (ARDBs).
Refinance is also provided to HFCs for project loans extended by them to various implementing agencies.
NHB also provides direct finance to public housing agencies such as, State Level Housing Boards and Area Development Authorities for large scale integrated housing projects and slum redevelopment projects.
NHB also participates in the equity share capital of HFCs and other related companies.
Besides, the above, NHB has in the past acted as a Special Purpose Vehicle (SPV) for securing the housing loan receivables i.e. Securitization.
NHB has also had a scheme to guarantee the repayments of principal and payment of interest on bonds issued by HFCs (guarantee).