National Housing Bank

Mission
"To harness and promote the market potentials to serve the housing needs of all segments of the population with the focus on low and moderate income housing "

Objectives
NHB has been established to achieve, inter alia, the following objectives :
To promote a sound, healthy, viable and cost effective housing finance system to cater to all segments of the population and to integrate the housing finance system with the overall financial system. To promote a network of dedicated housing finance institutions to adequately serve various regions and different income groups. To augment resources for the sector and channelize them for housing. To make housing credit more affordable. To regulate the activities of housing finance companies based on regulatory and supervisory authority derived under the Act. To encourage augmentation of supply of buildable land and also building materials for housing and to upgrade the housing stock in the country. To encourage public agencies to emerge as facilitators and suppliers of serviced land, for housing.

Functions - Regulations
It regulates the housing finance system of the country to its advantage and prevents the affairs of any housing finance institution being conducted in a manner detrimental to the interest of the depositors National Housing Bank has been empowered to determine the policy and give directions to the housing finance institutions and their auditors National Housing Bank supervises the sector through a system of on-site and off-site surveillance

Functions - Financing
Extending refinance to different primary lenders in respect of Eligible housing loans extended by them to individual beneficiaries, for project loans extended by them to various implementing agencies Lending directly in respect of projects undertaken by public housing agencies for housing construction and development of housing related infrastructure. Guaranteeing the repayment of principal and payment of interest on bonds issued by Housing Finance Companies. Acting as Special Purpose Vehicle for securitizing the housing loan receivables.

Functions - Promotion
The principal mandate of the Bank is to promote housing finance institutions to improve/strengthen the credit delivery network for housing finance in the country The Bank has played a facilitator role in this regard instead of itself opening such dedicated housing finance institutions As a part of its promotional role NHB has also formulated a scheme for guaranteeing the bonds to be issued by the housing finance companies Considering the need for trained personnel for the sector NHB has designed and conducted various training programmes

NHB- Initiatives
1. Residential mortgage backed securitisation Residential mortgage-backed securities (RMBS) are a type of mortgage-backed security which are backed by mortgages on residential rather than commercial real estate. NHB launched the pilot issues of Mortgage Backed Securities (MBS) in August 2000 in the Indian financial market, followed by other MBS issues cumulating to Rs.664 crores.

NHB- Initiatives
2. Retail deposites
NHB is offers three deposit schemes at attractive rates of interestNHB SUNIDHI Term Deposit Scheme: It is a term deposit scheme for Individuals/HUFs/Partnerships/Societies & Trusts & Association of persons. The minimum deposit in the scheme is Rs. 50,000 with a maturity period ranging from 12 months to 60 months. NHB SUVRIDDHI (Tax Saving) Term Deposit Scheme: It is a tax saving deposit scheme for individuals & HUFs U/S 80 C of Income Tax Act. The minimum deposit in the scheme is Rs. 10,000 and thereafter in multiple of Rs. 10,000 with a fixed maturity of 60 months. Individuals & HUFs can invest maximum Rs. 1,00,000 in the scheme. Special Term Deposit Scheme for HFCs: The scheme is applicable only to the Housing Finance Companies accepting deposit from public. HFCs can make a minimum deposit of Rs. 25,00,000 and thereafter in multiple of Rs. 5,00,000 for a maturity ranging from 18 months to 60 months.

NHB- Initiatives
3. Reverse Mortgage Loan
Reverse mortgage is a financial product that enables senior citizens (60 +) who own a house to mortgage their property with a lender and convert part of the home equity into taxfree income without having to sell the house.
Instead of you making monthly payments to a lender, as with a regular loan, the lender makes payments to you. Multiple options are available for repayment of the loan in lump sum at the end of the loan term. Maximum period of loan is of twenty years.

NHB- Initiatives
4. REVERSE MORTGAGE LOAN enabled ANNUITY Reverse Mortgage is the new type of loan scheme to cater to the old age peoples last days needs. In Reverse Mortgage Loan enabled Annuity your annuity is fixed throughout borrowers life span. Which is not the case with normal Reverse Mortgage loans, suppose property value drops then your monthly payment drops. Also if borrower lives even after 20 years of loan period then you will not get any periodical income from normal reverse mortgage but this is not the case with annuity backed reverse mortgage

Presently
It has been estimated that the housing requirements till 2012 in India is around 74 mn units out of which nearly 90% of the total housing units in both the rural and urban areas are for the poor and low income segment households NHB is on the verge of developing a new financial architecture , policy and regulatory framework for affordable housing on sustainable lines for the weaker sections of the society

Current News
For the financial year ending 30th June 2012 the bank posted a net profit of Rs 387 Cr and gross loans and advances of Rs 28,940 Cr The banks total loan disbursement during the year were Rs 14,454 Cr , out of which the share of rural housing was 39% aggregating Rs 5610 Cr

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