Will the new National Housing Bank (NHB) guidelines put your housing plans on hold?

As per a recently issued circular, the National Housing Bank (NHB) has issued a fresh set of guidelines on various subventions schemes offered by developers

  • Will the new National Housing Bank (NHB) guidelines put your housing plans on hold?
  • Will the new National Housing Bank (NHB) guidelines put your housing plans on hold?
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Were you planning on buying a new home under a 10:90 or 20:80 payment plan? The National Housing Board may have just put those plans on hold.

The National Housing Bank (NHB) has issued a fresh set of guidelines on various subventions schemes offered by developers across the city with assistance from Housing Finance Corporations (HFC’s), according to a circular made public last week. A majority of the schemes involved a payment free period, where the Pre-EMI’s or the EMI’s for the loan were born by developers, passing on relief to the end consumer. The move comes as an attempt to link loans and financial disbursement for projects to actual construction progress. The circular prohibits upfront disbursement of funds to developers for incomplete or under construction properties. 

The move comes as a further initiative by the Government to protect home-buyers from unscrupulous developers, who would often claim disbursement of loans from HFC’s and then back out on their financial commitments a few months later, leaving home buyers confused by demands from HFC’s for payment of Pre-EMI’s or EMI’s. The move is also seen as a further push for RERA enforcement since developers must post quarterly sales and construction completion information on the RERA website.

The move is expected to adversely affect sales for developers across the city since most buyers were opting for subvention schemes due to a severe liquidity crunch across the real estate sector. It also poses a challenge to developers as they are now tasked with coming up with new ways to make real estate more attractive for potential home-buyers.

Here's the circular shared by NHB


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