National Housing Bank has said that it would like to help in refinancing the non-banking financial companies (NBFCs) offering home loans to borrowers.
Up to now, NHB had kept its refinancing job only to those home loan companies registered with it. The bank intends to expand the extent of its business with an emphasis on rural and semi-urban regions. NBFCs are widely present here.
The bank has sought approval from RBI in this respect.
RV Verma, NHB’s chairman and MD said, “Our proposal is consistent with NHB’s charter”.
He said, “We are exploring the possibilities to finance all intermediary lending institutions to augment the flow of funds to the housing market”.
Chandra Shekhar Ghosh, chairman and MD of Bandhan said, “MFIs, like us, will be immensely benefited if NHB provides refinance support”. Bandhan Financial Services intends to venture into housing finance business shortly.
Mr. Verma said, “The move will help NBFCs diversify their source of funds too”.