Refinance Issues and Way Forward Peeyush Pandey Manager National Housing Bank April 20, 2012

Presentation Structure  Status of Refinance  Policy Changes  Issues and Challenges  Way Forward

Status of Refinance

Refinance Disbursements

Urban - Rural Break-up

Loan Size Wise Break-up July March 2012

Policy Changes

Initiatives / Products  Introduction of Refinance Scheme for housing loans to borrowers of weaker section (under RHF) [since ]  Refinance Scheme for Energy Efficient Housing [since ]

 Extension of refinance under the Rural Housing Fund to the non-contributing Public Sector Banks  Policy relaxations for new HFCs engaged in housing finance in rural areas / for low income segments  Equity support to new HFCs engaged in housing finance in rural areas / for low income segments

Issues & Challenges

 PLIs to scale up lending operations o in rural areas o to low income / informal segments o under Govt. programmes / schemes for rural housing / affordable housing  Encourage participation in Government schemes for rural / affordable housing to EWS / LIG beneficiaries

Rural Housing Fund  Expanding credit availability  Ensuring proper utilization  Passing on benefit of low cost funds to ultimate beneficiaries  Strengthening MIS to capture data on income and other eligibility parameters

 Timeliness in submission of information / returns to NHB

Way Forward

 Avail at least one-half of the sanctioned limit under RHF / for low income housing  Increasing loan portfolio by taking advantage of Credit Guarantee Fund / loan-cum-subsidy programmes of Government(s)

 Indirect finance  Construction finance for affordable housing

Energy Efficient Housing  Sahara City Homes (type A, B, C & D) at Nagpur %  Sahara City Homes at Lucknow - 32%  3C’s projects at NOIDA %  Hiranandani Palace Gardens at Mumbai - 33%  BCIL Zedwood at Bangalore %