National Housing Bank (NHB)

National Housing Bank (NHB) was set up to promote the housing sector in India. The aim behind the formation of NHB was to promote housing finance institutions both at local and regional levels. The bank is now a government-owned entity, serving the housing needs of all segments of the population. However, the focus is to provide housing to low and moderate income groups.

Functions of National Housing Bank

Apart from strengthening the housing finance system, NHB also works towards achieving the below-mentioned objectives.

• Promoting a network of dedicated housing finance institutions for various regions and different income groups
• Making housing credit more affordable
• Encouraging the supply of buildable land and also building materials for housing
• Motivating and supporting public agencies to emerge as facilitators and suppliers of serviced land, for housing

Government Housing Schemes Under NHB

National Housing Bank offers two housing schemes under the ‘Housing for All’ program of the government. These are:

1. Pradhan Mantri Awas Yojana (PMAY)
2. Rural Housing Interest Subsidy Scheme

Pradhan Mantri Awas Yojana, Credit Linked Subsidy Scheme

PMAY scheme was launched in 2015 by Prime Minister Narendra Modi, with an aim to provide affordable housing to the urban poor with basic amenities such as water connection, toilet facilities and 24*7 power supply.

Features & Benefits PMAY – NHB

• Interest subsidy benefit of up to 6.5%
• Approval on building designs is compulsory before construction
• Compulsory ground floor accommodation for senior citizens and differently-abled
• Encourages women to be homeowners or co-applicants

Eligibility for Credit Linked Subsidy Scheme (CLSS)

CLSS Scheme Type	EWS/LIG	MIG – I	MIG – II
Loan Purpose	Purchase/Self Construction/Extension	Purchase/Self Construction	Purchase/Self Construction
Eligibility (Household/Family Income)	Between Rs. 3 lakh and Rs 6 lakh	Between Rs. 6 lakh and Rs. 12 lakh	Between Rs.12 lakh and Rs.18 lakh
Carpet Area (Maximum)	60 sqm	160 sqm	200 sqm
Eligible Loan Amount for Subsidy Calculation	Rs. 6 lakh	Rs. 9 lakh	Rs. 12 lakh
Interest Subsidy	6.50%	4.00%	3.00%
Maximum Subsidy	Rs. 2.67 lakh	Rs. 2.35 lakh	Rs. 2.30 lakh
Validity	March 31, 2022	March 31, 2020	March 31, 2020
Woman Ownership	Mandatory	Not Mandatory	Not Mandatory

Note: The PMAY/CLSS is at the sole discretion of the Government of India. The contents given in the table are parameters as mentioned under the scheme.

Check: Details of Credit Linked Subsidy Scheme (CLSS)

PMAY Eligibility Criteria

• The house to be acquired should be preferably in the name of female head of the household or in the joint name of male head and his wife
• The beneficiary family should not own a pucca house in the name of any member of their family anywhere in India
• In case of married couples, either of the spouse or both together in joint ownership will be eligible for a single subsidy
• The beneficiary family should not have availed central assistance under any other housing scheme from the Government of India or any benefit under any scheme in PMAY

Details

• For MIG category, Aadhaar number(s) of the beneficiary family is mandatory
• Interest subsidy will be available for maximum loan tenure of 20 years or the loan tenure, whichever is lower
• Additional loan beyond the specified limits, if any, will be at non-subsidised rate
• There is no limit on the loan amount or the cost of the property

Check PMAY Eligibility

Rural Housing Interest Subsidy Scheme (RHISS)

RHISS was launched with an objective to provide pucca houses by 2022 to all those without a home and to those living in kutcha houses. Rural Housing Interest Subsidy Scheme also focuses on providing assistance to households in rural areas to construct, improve or repair their existing dwellings.

Details of RHISS

Particulars	RHISS
Interest Subsidy	3% p.a.
Maximum Loan Tenure	20 years
Minimum Eligible Loan Amount to avail Subsidy	Rs. 2 lakh
Discount Rate for Net Present Value (NPV) calculation of interest subsidy	9%

• Under this scheme, any rural household that does not appear on the permanent wait list for Pradhan Mantri Awas Yojana (Gramin), will come under the eligible beneficiary category
• Additional loan beyond the specified limits, if any, will be at non-subsidised rate
• Advance subsidy payment will be released to the Central Nodal Agency (CNA) at the start of the scheme, and subsequent subsidy amounts will be released after 70% utilisation of the previous amount or as prescribed in the end-use certificate submitted to CNA by the Primary Lending Institution

History of National Housing Bank

The decision to establish the National Housing Bank (NHB) as an apex level institution for housing finance was taken in the Union Budget – 1987-88. Thus, NHB was set up on July 9, 1988, under the National Housing Bank Act, 1987, with its entire paid-up capital coming from the Reserve Bank of India (RBI). The Finance Act, 2019 amended the National Housing Bank Act,1987, after which the government fully took over NHB. One the proposals under Union Budget – 2019 came into effect, the government took away the powers of NHB to regulate housing finance companies (HFCs) and handed them to the Reserve Bank of India (RBI).

Some of the notable milestones achieved by NHB are:

• 1991-92: Received loan assistance of Yen 2,970 billion from OECF (now JBIC)
• 1991-92: Scheme for Financing Housing Infrastructure
• 1999-2000: Agreement for Cooperation with Canada Mortgage and Housing Corporation for introducing Mortgage Insurance and New Products in the Country
• 2002-03: Liberalized Refinance Scheme for Housing Loans
• 2005-06: Fraud Management Cell set up to disseminate information on frauds committed on housing loans
• 2007-08: Rural Housing Fund was created by allocation Rs.1,000 crore
• 2007-08: Rural Housing Microfinance was launched
• 2007-08: House Loan Counselling Diploma programme put in place (IIBF)

NHB Contact Details

For any query or assistance, NHB can be contacted through mail or phone.

NHB Email: clssim@nhb.org.in

NHB Toll-Free Numbers: 1800-11-3377, 1800-11-3388

FAQs on NHB Housing Bank

Q1. Who is the chairman of the National Housing Bank?

Currently, the general supervision, direction and management of the affairs and business of NHB vest in a Board of Directors having Shri Sarada Kumar (S.K.) Hota as the Managing Director.

Q2. Is National Housing Bank a subsidiary of RBI?

After the Finance Act, 2019, the National Housing Bank is a complete government-controlled and owned entity. NHB, was a subsidiary of Reserve Bank of India (RBI) but, now has been taken over by the government.

Q3. What is NHB Subsidy?

The subsidy is offered under the Government Housing Schemes PMAY and RHISS to the eligible applicants.

Q4. Is balance transfer for subsidy allowed under PMAY?

No, as per the scheme guidelines, balance transfer case is not allowed for the NHB PMAY subsidy.

Q5. Can I apply for PMAY without Aadhaar number?

No, Aadhaar number is mandatory for PMAY application.