Fresh measures to strengthen housing finance companies
NHB will launch a Mortgage Credit Guarantee Scheme, which would be provided to all housing loans thereby fully protecting lenders against default
Union Finance Minister Yashwant Sinha told Parliament today that the initiatives taken in the housing finance area in the last four years have shown positive results.
Total disbursement from housing finance institutions in 2000-01 was Rs 26,300 crore, a growth of about 28% in the year. This amount financed the construction of about 28 lakh houses, much higher than the annual target of 20 lakh houses. In the current year the growth rate is expected to be around 35%.
To further strengthen housing finance the following measures are being taken:
1.Consequent to the amendment to the National Housing Bank Act, NHB has commenced securitisation of housing loans and is operationalising foreclosure of mortgages.
2.The NHB will launch a Mortgage Credit Guarantee Scheme, which would be provided to all housing loans thereby fully protecting lenders against default. This will make housing credit more affordable thereby also increasing access to housing credit in rural areas.
3.The target under the Golden Jubilee Rural Housing Finance Scheme is proposed to be increased to 2.25 lakh for 2002-03, up from 1.7 lakh in the current year. About 1 lakh units have already been financed up to December 2001.
4.The allocation of the Indira Awas Yojana is being increased by 13% to Rs 1,725 crore for 2002-03.
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