By Accommodation News Services
Cheap housing loans are now possible as housing finance companies are been accessed for overseas funding
Affordable housing is the necessity of the hour, buyers are in search of their dream homes but, high prices restrict them to achieve their dream. But, know National Housing Bank (NHB) has made this possible, by providing cheap loans for affordable housing. NHB has set new guidelines for housing loans, in order to favor affordable home. Cheap housing loans are now possible as housing finance companies are been accessed for overseas funding.
According to R.V. Verma, Chairman and Managing Director of NHB, says, we have set the guidelines to ensure a cap on interest rates which will be financed through overseas funding to, this will lower the interest rates. The initiative taken by NHB will encourage people to buy homes and this will bust the real estate market.
When asked to Mr. Verma about the new guidelines he said, “As per the new guidelines norms the interest rates will be set lower than the normal leading rates and there will be a constant monitoring on the rates. The guidelines will be declared within a week.”
According to the norms NHB would be vigilance on the loan rates and the property rates offered by the HFCs and developers. This would be practiced in order to ensure the benefits are reached to the buyers.
NHB has already started receiving the applications, since December, till date they have received applications worth $ 1 billion. They have received applications from many HFCs like LIC Housing Finance, HDFC and Dewan Housing Finance Ltd. Even, some developers are interested in raising the funds; they have offered to raise funds amounting to $100 million. The funds raised through ECB is planned to be utilized for developing low-cost housing projects or for providing loans up to Rs 25 lakh to the buyers willing to buy property up to Rs. 30lakh or less, said by RBI. LIC Housing Finance and HDFC have applied for 455 million and 500 million respectively.