NHB Tweaks Rs 30,000 Crore Liquidity Infusion Facility For Housing Finance Companies
Indian two thousand and five hundred rupee banknotes are arranged for a photograph in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

NHB Tweaks Rs 30,000 Crore Liquidity Infusion Facility For Housing Finance Companies

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The National Housing Bank has revised its Rs 30,000 crore liquidity infusion facility scheme to encourage housing finance companies to avail refinance funds.

Under the revised scheme, exposure cap of Rs 750 crore per housing finance companies and exposure ceiling of 50 percent of individual housing loan have been removed, the NHB said in a statement.

The maximum exposure was revised to 30 percent of HFC's net owned fund or 50 percent of NHB's net owned funds, whichever is lower, it said.

The scheme was launched by the NHB in August 2019 with a corpus of Rs 30,000 crore to infuse liquidity in the housing finance system. The special liquidity window is available to HFCs till June 2020.

The NHB said that the timeline for creation of IHL portfolio of the HFCs increased from three months to six months. The existing scheme is bifurcated into two schemes based on meeting the eligibility criteria under the regular refinance.

Rate of interest will be 0.50 percent above the rate of interest applicable under the Liberalised Refinance Scheme if the total assets are above Rs 2,000 crore, it said.

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