Frequently Asked Questions
1. What is the role of NHB?
NHB regulates the housing finance system of the country, extends refinance to different primary lenders and lends directly in respect of projects undertaken by public housing agencies for housing construction and development of housing related infrastructure.
2. Is NHB a Government owned Bank or a private Bank?
National Housing Bank is a statutory organization set up on July 9, 1988 under the National Housing Bank Act, 1987. NHB is wholly owned by Reserve Bank of India, which contributed the entire paid-up capital.
3. Does NHB deal directly with public?
4. Whether NHB provides direct loans?
NHB grants direct loans to Public Agencies directly or in partnership with private developers under PPP model to development of housing projects as per the Schemes/Guidelines of NHB.
5. Can I get individual housing loan/mortgage loan/reverse mortgage loan from National Housing Bank?
NHB does not grant any loan directly to individual.
6. What is the Grievance Redressal Mechanism in place for customers of HFCs regulated by RBI?
Complainant can lodge the complaint with the respective housing finance company (HFC) as envisaged in the Fair Practices Code adopted by the concerned HFC. An online (24×7) Grievance Registration and Information Database System (GRIDS) has been implemented for lodging the complaint by the complainant against HFCs and its status tracking for efficient and effective disposal. Further, if the complainant is still not satisfied with the outcome or his complaint is not resolved within a given period, he/she can approach other forms of legal remedies available.
7. Where can one find list of companies whose CoR has been cancelled by RBI?
The list of such companies is available on NHB’s website and can be viewed at
list of companies.
8. HFCs are doing functions similar to banks as bank also provides housing loans. What is difference between banks & HFCs?
HFCs lend and make investments and hence their activities are akin to that of banks. However, there are a few differences as given below:
- HFCs cannot accept demand deposits;
- HFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself;
- deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of HFCs, unlike in case of banks.
9. How to avail refinance from NHB?
Refinance Schemes of NHB as applicable to various category of Primary Lending Institutions (PLIs) viz, Scheduled Banks (including RRBs), HFCs, ACHFS and ARDBs etc., along with the eligibility conditions to avail refinance are available at NHB’s website. PLIs desirous of availing refinance may send their applications as per the prescribed format for sanction of annual refinance limit (July-June).
10. What are the indicative rates of Refinance?
Generally, interest rate on refinance is determined at the time of disbursement as per the pricing mechanism of the Bank. In case of schemes where interest rates are pre-determined, they are available on NHB’s website and are also communicated through circulars.
11. Does National Housing Bank extend loan facilities to private developers for construction of flats/apartments?
12. Rates of Interest/tenure for NHB Sunidhi and Suvridhi Deposit Schemes
The relevant details are available on following links:
13. Whether tax saving deposit is available with NHB?
NHB SUVRIDDHI (Tax Saving) Term Deposit Scheme: It is a tax saving deposit scheme for individuals & HUFs U/S 80 C of Income Tax Act. The minimum deposit in the scheme is Rs. 10,000 and thereafter in multiple of Rs. 10,000 with a fixed maturity of 60 months. Individuals & HUFs can invest maximum Rs. 1,00,000 in the scheme. The relevant details of the scheme are available on the link:
14. Why does NHB deduct TDS with a ceiling of Rs.5000/- p.a. whereas it is Rs.10,000/-p.a. for banks?
As per Section 194A of the Income Tax Act, TDS with a ceiling of Rs.10,000 is deducted in case of following Institutions:
- where the payer is a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution, referred to in section 51 of that Act);
- where the payer is a co-operative society engaged in carrying on the business of banking;
- on any deposit with post office under any scheme framed by the Central Government and notified by it in this behalf;
And in any other case TDS is deducted with a ceiling of Rs.5000/p.a.. As NHB does not fall in any of the above stated category of Institutions, it deducts TDS with a ceiling of Rs.5000/- p.a.
15. Does NHB extend RML?
NHB does not extend loans directly to individuals as per the provisions of the National Housing Bank Act, 1987.
16. Who are eligible for RML facility?
RML can be availed by Senior citizens of India (above 60 years) against the mortgage of the house owned and occupied by them, subject to compliance with the terms and conditions of the RML product offered by the Primary Lending Institutions (PLIs).
17. What are the income tax rules on RML and RMLA ?
All payments under RML are exempt from income tax under Section 10(43) of the Income-tax Act, 1961. The Government of India have vide Notification No.79/2013/F.No.149/54/2013-TPL dated October 07, 2013 amended the Reverse Mortgage Scheme, 2008 to include RMLA in the Reverse Mortgage (Amendment) Scheme, 2013, also eligible for tax exemption.
18. Is there any standard valuation method for availing loan under RML?
RML is being extended by the PLIs as per their commercial judgment and risk perception, in accordance with their operational processes and procedures.
19. Can I rent out the property mortgaged under RML/RMLeA?
PLIs reserve the discretion to extend RML as per their commercial judgment and risk perception, in accordance with their operational processes and procedures.
20. Which Banks give loans on RML?
RMLs are extended by Primary Lending Institutions (PLIs) viz. Scheduled Banks and Housing Finance Companies (HFCs) registered with NHB.
21. What is Credit Risk Guarantee Fund Trust Fund for low housing?
Credit Risk Guarantee Fund Scheme for Low Income Housing (CRGFS) was formulated by MoHUPA, Govt. of India in consultation with DFS, MOF. The objective of the scheme is to provide credit guarantee support to Collateral free/third-party guarantee free housing loans up to Rs.5 lakhs extended by eligible lending institutions for Low Income Housing in urban areas. NHB has been mandated to manage the Fund Trust under the scheme, set up by MoHUPA, Govt. of India.
22. Whether individuals can make use of Credit Guarantee Fund Scheme for Low Income Housing by insuring his/her loan against default?
Individual borrowers belonging to the Economically Weaker Section (EWS) or Low Income Housing Group (LIH) of the population and eligible borrowers, forming a group or housing society of at least 20 members in urban areas, are eligible to get guarantee cover under the Scheme for housing loans upto 5 Lakhs. However, eligible individual borrowers as defined cannot directly approach the Trust to get Guarantee Cover under the scheme. The eligible lending institutions will have to apply for Guarantee Cover for the loans sanctioned and disbursed by them to such eligible borrowers.