NHB revises the refinance guidelines for meeting the mandate of the Bank

Dec 17, 2019 | by Avantis RegTech Legal Research Team


Finance & Taxation Compliance

The National Housing Banks (NHB) on December 09, 2019, has revised the refinance guidelines for meeting the mandate of the Bank on review of the refinance portfolio of the Bank. NHB had introduced various refinance schemes from time to time for supporting and incentivizing the lenders in meeting the housing credit needs of the low and moderate income households in the urban and rural areas.

NHB has decided to make certain amendments in the refinance guidelines on review of the refinance portfolio of the Bank, those are:-

1. Refinance limit sanctioned to the Primary Lending Institutions (PLIs) shall remain valid for one year from the date of sanction letter issued by NHB, whereas the facility of carry forward of un-utilized limit to the next financial year of NHB stands withdrawn.

2. PLIs have to convey the acceptance to the terms and conditions of the sanction to NHB within 90 days of receipt of sanction letter and avail the first disbursement within 3 months from the date of acceptance of sanctioned limit.

3. The minimum tenure of refinance will be one year and it may be extended based on the minimum and maximum tenures specified under the various refinance schemes for all PLIs, including Scheduled Commercial Banks.

[NHB(ND)/ROD/CIRC-01/2019-20]


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