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NHB comes to Tsunami Victims with Help

NHB comes to Tsunami Victims with Help : Dec 31, 2004
December 31, 2004
  • NHB comes to Tsunami Victims with Help
  • NHB’s Succor to Tsunami Victims
  • NHB announces concessional scheme for Tsunami Victims

While expressing his deep concern about the insurmountable loss of lives and extensive damage to the property of people in the coastal areas of Southern India affected by the tidal wave Tsunami, Shri P K Gupta, Chairman and Managing Director of the National Housing Bank (NHB) announced a concessional scheme to provide financial assistance to the people in the affected States for construction/repairs and renovation of houses and provision of housing related infrastructure.

The assistance will be provided both through Refinance and Direct Finance routes.

The salient features of the assistance will be:

  • Refinance to Banks and Housing Finance Companies (HFCs) against loans provided to individual borrowers affected by the tidal waves.
  • Project assistance to Public Agencies like Housing Boards, Development Authorities, Municipal Corporations, Improvement Trusts, Slum Clearance Boards or similar Institutions / Agencies notified by the State/Central Government to undertake such projects.
  • Refinance will be extended at a concessional rate of 5.00% and Project Finance at 5.50% .
  • Banks and HFCs would not charge interest higher than 6.50% from ultimate borrowers.
  • Loans to be extended for 15 years including 2 years of moratorium on payment of principal and interest capitalization during the construction period.
  • Procedural simplicity with Banks and HFCs being allowed to claim refinance under this Scheme for disbursals made by them on or after January 1, 2005.
  • Detailed guidelines are being issued by NHB in this regard.

NHB expects a good response from Banks and HFCs to these Schemes in the context of large drawals of refinance witnessed during the current year. The refinance assistance during the first six months (July-December) has been to the tune of Rs.4050 crores as against Rs.3253 crores during the last financial year.

Shri Gupta announced that a sum of Rs.100 crores has been earmarked for this purpose. He indicated that NHB would be willing to consider modifications in the Scheme based on the feedback from beneficiary institutions.

(P.K. Kaul)
General Manager