The Special Liquidity Facility scheme

May 07, 2020 | by Avantis RegTech Legal Research Team

Industry Specific Compliance

The National Housing Bank (NHB) has launched Special Refinance Facility (SRF) scheme under the wake of COVID-19 pandemic as theReserve Bank of India (RBI) had provided the Special Refinance Facility of Rs. 10,000 crore to National Housing Bank (NHB) to enable it to infuse liquidity into the housing sector through Housing Finance companies (HFCs) as also other PLIs at more affordable rates.

The main objective of the scheme is to provide short term refinance support to HFCs and other eligible PLIs which will partially mitigate their liquidity risk and improve the much needed liquidity into the overall housing finance system. The total amount allocated under this scheme shall be Rs. 10,000 crore.

The HRF’s, RRB’s, SFB’s, SCB’s shall be applicable under the scheme. The ratio of individual housing loans shall be minimum of 51% according to the total assets and minimum 15% of cash flow shall be affected. The loan shall be applicable for the period of one year and the payment is to be made by the end of the tenor. The interest applicable is to be paid on the quarterly basis.

The HFC’s and PLI’s are to be utilised 100% by the end of the year. The application is to be submitted to the concerned authorities under the scheme. The balance sheet and other documents are to be submitted to the authorities by the end of March 31, 2020.


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