In pursuance of National Housing Policy of
Central Government, Reserve Bank of India has been facilitating the flow of
credit to housing sector. Since housing has emerged as one of the sectors
attracting a large quantum of bank finance, the current focus of RBI’s
regulation is to ensure orderly growth of housing loan portfolios of banks. Banks
with their vast branch network throughout the length and breadth of the country
occupy a very strategic position in the financial system and were required to
play an important role in providing credit to the housing sector in consonance
with the National Housing Policy.
Eligibility
Criteria:
The following are the eligible categories to avail housing loans under Direct
Housing Finance:
Ø Bank finance
extended to a person who already owns a house in town/village where he resides,
for buying/constructing a second house in the same or other town/village for
the purpose of self occupation.
Ø Bank finance
extended for purchase of a house by a borrower who proposes to let it out on
rental basis on account of his posting outside the headquarters or because he
has been provided accommodation by his employer.
Ø Bank finance
extended to a person who proposes to buy an old house where he is presently
residing as a tenant.
Ø
Bank
finance granted only for purchase of a plot, provided a declaration is obtained
from the borrower that he intends to construct a house on the said plot, with
the help of bank finance or otherwise, within such period as may be laid down
by the banks themselves.
Ø
Banks
may consider requests for additional finance within the overall ceiling for
carrying out alterations/additions/repairs to the house/flat already financed
by them.
Ø In the case of individuals who might have raised funds for construction/ acquisition of accommodation from other sources and need supplementary finance, banks may extend such finance after obtaining paripassu or second mortgage charge over the property mortgaged in favour of other lenders and/or against such other security, as they may deem appropriate.
