Housing loans against collateral of informal properties on cards
Updated: Jul 25, 2014 03:26:18pm
New Delhi, Jul 25 (KNN) Those running small businesses and trade with low income can hope to get housing loans against collaterals of "informal properties". A mechanism for the same will be worked out by the National Housing Bank.
The Government of India and the World Bank have signed a USD 100 million credit agreement aimed at helping low-income households in Indian cities access loans to purchase, build or upgrade their dwellings.
National Housing Bank will be the implementing agency for the NHB – WB Low Income Housing Programme.
Under the program which will encourage the flow of funds to the urban poor for their housing requirements, NHB will be receiving loan of USD 100 million over a period of five years from World Bank which will be used to refinance the retail loans extended by the Primary Lending Institutions (PLIs) which conform to the criteria laid down under the program, as per official data.
The project has three components which are (I) Capacity Building of the National Housing Bank (NHB), Qualified Intermediary Institutions, and Qualified Primary
Lending Institutions (QPLIs), (II) Financial Support for Sustainable and Affordable Housing for NHB to refinance, directly or indirectly through Qualified Intermediary
Institutions, low-income housing loans made by QPLIs to Primary Borrowers to purchase, build or upgrade their dwelling, and (III) Project Implementation.
Essential criteria prescribed under the program are - Annual Income of the Household to be less than or equal to Rs. 200,000; the loan size must be less than or equal to Rs. 500,000; Loan to Value ratio to be less than or equal to 80 per cent; the Dwelling Unit (DU) must be in urban area; no loan for plot purchase shall be eligible.
In several urban areas lakhs of people do not have properties with proper legal titles, thus face problem of borrowing against the same.
For the MSMEs, loans against property are often used for meeting their working capital. (KNN/ES)
The Government of India and the World Bank have signed a USD 100 million credit agreement aimed at helping low-income households in Indian cities access loans to purchase, build or upgrade their dwellings.
National Housing Bank will be the implementing agency for the NHB – WB Low Income Housing Programme.
Under the program which will encourage the flow of funds to the urban poor for their housing requirements, NHB will be receiving loan of USD 100 million over a period of five years from World Bank which will be used to refinance the retail loans extended by the Primary Lending Institutions (PLIs) which conform to the criteria laid down under the program, as per official data.
The project has three components which are (I) Capacity Building of the National Housing Bank (NHB), Qualified Intermediary Institutions, and Qualified Primary
Lending Institutions (QPLIs), (II) Financial Support for Sustainable and Affordable Housing for NHB to refinance, directly or indirectly through Qualified Intermediary
Institutions, low-income housing loans made by QPLIs to Primary Borrowers to purchase, build or upgrade their dwelling, and (III) Project Implementation.
Essential criteria prescribed under the program are - Annual Income of the Household to be less than or equal to Rs. 200,000; the loan size must be less than or equal to Rs. 500,000; Loan to Value ratio to be less than or equal to 80 per cent; the Dwelling Unit (DU) must be in urban area; no loan for plot purchase shall be eligible.
In several urban areas lakhs of people do not have properties with proper legal titles, thus face problem of borrowing against the same.
For the MSMEs, loans against property are often used for meeting their working capital. (KNN/ES)
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