By Accommodation Times News Service
National Housing Bank (NHB) will be raising up to 200 million dollar in next quarter under the new ECB window allowed by Reserve Bank of India.
Chairman and MD of NHB R V Verma said, we are looking at raising up to USD 200 million under the new external commercial borrowing (ECB) window opened by RBI for low-cost housing. We will soon approach RBI for its permission. The money will be used to fund retail housing’’. Going forward the housing finance regulator will also try to raise funds on behalf of developers who are into low-cost housing. Adding further he said our funds will be used to finance low-income households by way of credit to housing finance companies on pre=condition that the fund is used only to build affordable houses.
RBI on December 17 allowed real estate developers and the housing companies to rise up 1 billion through ECBs to promote projects for economically backward sections. Besides developers HFCs/NHB can raise funds slum rehabilitation projects too.
As per the RBI guidelines developers or builders with a minimum track record of five years in undertaking residential project will be eligible to raise ECBs.