Lok Sabha Question No. 5115 (UNSTARRED), answered on 2022-04-04
Subject: Housing Finance Sector
Ministry: FINANCE
Asked by: Magunta Sreenivasulu Reddy

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UN-STARRED QUESTION NO. 5115

TO BE ANSWERED ON 4 th  APRIL, 2022/ 14 CHAITRA, 1944 (SAKA)

## 'Housing Finance Sector'

5115 : Shri. MAGUNTA SREENIVASULUREDDY

Will the Minister of FINANCE be pleased to state:

(a) whether the Government has created a framework to address the crisis in Housing Finance Sector;

(b) if so, the details thereof and if not, the reasons therefor;

(c)  whether  the  Government  is  aware  of  the  dent  in  Housing  Finance  Corporations assets growth due to the onset of the COVID-19 pandemic; and

(d) if so, the actions taken by the Government to address the issue?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (DR. BHAGWAT KARAD)

(a)  and  (b) :  The  Reserve  Bank  of  India, vide its  Master  Direction  -  Non-Banking Financial  Company  -  Housing  Finance  Company  (Reserve  Bank)  Directions,  has stipulated  the  regulatory  framework  for  Housing  Finance  Companies  (HFCs),  which provides, inter  alia, that  to  resolve  stress  in  housing  finance  extended  by  HFCs,  in cases where there is a delay in completion of a project on account of factors beyond the control of the project implementing agency, HFCs are permitted to reschedule the loan agreement terms regarding interest and/or principal once and that such an account may be treated as standard provided that interest is paid regularly and there is no default. Further, in cases where natural calamities impair the repaying capacity of a borrower, HFCs  may  reschedule  loan  agreement  terms  regarding  interest  and/or  principal  and such accounts shall not be classified as sub-standard.

National  Housing  Bank  (NHB)  has  extended  its  support  to  the  HFCs  to  obviate  the liquidity  issues,  by  launching  various  schemes viz .,  Liquidity  Infusion  Facility  Scheme (LIFt), Affordable Housing Fund (AHF), Special Refinance Facility (SRF) and Additional Special  Refinance  Facility  (ASRF). The  support  extended  to  HFCs  under  the  said schemes is ₹9,244 crore under LIFt, ₹25,985 crore under AHF, ₹13,917 crore under SRF, and ₹8,112 crore under ASRF.

The  Government  of  India  has  set  up  the  Special  Window  for  Affordable  &  Middle Income Housing (SWAMIH) to provide priority debt financing for completing construction of stressed, brownfield, Real Estate Regulatory Authority registered residential developments  that  are  in  the  affordable  housing  or  in  mid-income  category,  have positive  net  worth  and  require  last-mile  funding  to  complete  construction  in  stalled housing projects. The fund has so far granted preliminary approval for 141 projects and final approval for 111 projects.

Further,  the  Government  of  India, vide notification  dated  17.6.2021,  has  notified  that HFCs having assets worth ₹100 crore and above are specified as financial institutions for  the  purposes  of  the  Securitisation  and  Reconstruction  of  Financial  Assets  and Enforcement  of  Security  Interest  Act,  2002,  thereby  enabling  them  to  enforce  their security interests for recovery purposes.

(c) and (d) : While there was a disruption in the business of HFCs during the first quarter of  the  financial  year  2020-21,  home  loan  extended  by  HFCs  has  since  picked  up. Details of the outstanding loan amounts of HFCs are as under:

In crore₹

|             | As on 31.3.2020   | As on 31.3.2021   | As on 28.2.2022   |
|-------------|-------------------|-------------------|-------------------|
| Outstanding | 6,53,484          | 7,14,379          | 7,93,980*         |

Source: National Housing Bank

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