National Housing Bank will Refinance Individual Housing Loans of about ₹ 20,000 Crore in 2017-18

The Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley while presenting the General Budget 2017-18 in Parliament today said that affordable housing will now be given infrastructure status, which will enable these projects to avail the associated benefits. The National Housing Bank (NHB) will refinance individual housing loans of about ₹ 20,000 crore in 2017-18. Thanks to the surplus liquidity created by demonetisation, the Banks have already started reducing their lending rates, including those for housing. The Finance Minister Shri Jaitley in his Budget Speech said that in addition, interest subvention for housing loans has also been announced by the Prime Minister.

Affordable housing infrastructure status expands project eligibility for benefits and enables refinancing and interest subvention support. Affordable housing is designated infrastructure status, making such projects eligible for associated regulatory and financing benefits. The National Housing Bank will provide a refinancing programme for individual housing loans to support credit flow. Concurrent measures include announced interest subvention for housing loans and reduced lending rates linked to increased surplus liquidity, collectively intended to improve affordability and access to housing finance.