Lok Sabha Question No. 976 (UNSTARRED), answered on 2015-12-04
Subject: Housing Finance Companies
Ministry: FINANCE
Asked by: A.T. (NANA) PATIL, SUBHASH RAMRAO BHAMRE

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

## 976. SHRI A.T. Nana Patil: Dr. Subhash Bhamre:

## LOK SABHA UNSTARRED QUESTION NO.976 TO BE ANSWERED ON THE 04 th December, 2015 / 13, AGRAHAYANA, 1937 (SAKA) 'HOUSING FINANCE COMPANIES'

Will the Minister of FINANCE be pleased to state:

- (b) whether the Government/ Micro Housing Finance Corporation has formulated any scheme to extend loans to weaker sections of the society;
- (a) the total number of Housing Finance Companies (HFCs) registered with the National Housing Bank;
- (c) if so the details thereof; and
- (d) the steps taken by the Government to ensure that HFCs focus mainly on the affordable housing segments in order to achieve the goal of housing for all by 2022?

The Minister of State in the Ministry of Finance (SHRI JAYANT SINHA)

## Answer

- (a ): As on date, 72 Housing Finance Companies (HFCs) are registered under Section 29 A of the National Housing Bank Act, 1987.

Rural Housing Fund (RHF): This is a scheme under which refinance is given to Primary Lending  Institutions  (PLIs)  for  lending  towards  rural  housing  undertaken  by  people  falling under the weaker section category. The housing loans eligible under this scheme are Direct Housing Loans up to Rs. 15 lakh disbursed by the PLIs.

(b) & (c): The Government has set up Rural Housing Fund (RHF) and Urban Housing Fund (UHF).

Urban Housing Fund (UHF): This is a scheme under which refinance asistance upto Rs. 10 lakh is provided in respect of housing loans extended by Primary Lending Institutions (PLIs) in urban areas for the construction/ purchase/ Repairs/ Renovation/ upgradation of dwelling units having carpet area not exceeding 60 m 2 or the cost of dwelling does not exceed Rs. 16 lakh.

To expedite the claim submission under CLSS, NHB has also developed an online portal  for  lodging  the  CLSS  claims  by  PLIs,  which  is  under  trial  run.  NHB  is  also  in  the process of sensitizing the PLIs through regional workshops.

(d): To  encourage  the  Primary  Lending  Institutions  (PLIs)  including  Housing  Finance Companies (HFCs) to promote Housing for All by 2022, the Government of India, Ministry of Housing  &  Urban  Poverty  Alleviation  (MoHUPA)  has  launched  Credit  Linked  Subsidy Scheme (CLSS), a Central Sector Scheme, under the second vertical of the Pradhan Mantri Awas Yojana (PMAY), Housing for All (Urban) Scheme. The National Housing Bank (NHB) is  a  Central  Nodal  Agency,  which  has  signed  Memorandum of Understanding (MoU) with 128 PLIs (including 69 HFCs), for implementing the Scheme.

The following three verticals of Pradhan Mantri AwasYojana, Housing for All (Urban) Scheme are being implemented as Central Sponsored Schemes by Ministry of Housing and Urban  Poverty  Alleviation  in  partnership  with  the  State  Governments  for  Economically Weaker Section (EWS):

-  Slum  rehabilitation  of  Slum  Dwellers  with  participation  of  private  developers  using land as a resource
-  Affordable Housing in Partnership with Public & Private sectors

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-  Subsidy for beneficiary-led individual house construction