Low Income Housing Finance Project
The Loan and Project Agreements for World Bank (IDA) assistance of US $100 million for Low Income Housing Finance Project were signed between Government of India/National Housing Bank and the World Bank on 14th August. The Objective of the Low Income Housing Finance Project is to provide access to sustainable housing finance for low income households/to purchase/build or upgrade their dwellings. The Low Income Housing Finance Project will have three components which are
1. Financial Support for Sustainable and Affordable Housing for NHB to, directly or indirectly through Qualified Intermediary Institutions, refinance low income housing loans made by QPLIs to Primary Borrowers to purchase, build or upgrade their dwelling;
2. Capacity Building of the National Housing Bank (NHB), Qualified Intermediary Institutions, and Qualified Primary Lending Institutions (QPLIs), and
3. Project Implementation - Expected results to be achieved at the end of the Low Income Housing Finance Project include an increase in the number of primary lenders active in the low-incomesegments, volume of loans to lower income borrowers, and the number of borrowers in these segments. Financing under the Low Income Housing Finance Project aims to create incentives for lenders to focus on lower income households through a net all-in reduction of the lenders cost of funds of approximately 200-300 basis points.
4. The Low Income Housing Finance Project also aims to deliver on its stated objective of reaching a higher proportion of lower income households while maintaining portfolio quality standards.
The Low Income Housing Finance Project expects to develop prudent lending standards to serve the more vulnerable, lower income households, expand the coverage of credit bureaus to include informal income borrowers, develop consumer information and disclosure norms for the project’s target groups, enhance the appraisal capacity of the lenders, as well as pilot new policies and products to overcome the challenges of dwelling informality.
It is a financial intermediary loan for an implementation period of 5 years.
National Housing Bank is the implementing agency.
This post contains the Indian current affairs of August 2013. These are short current affairs 2013 notes for quick review.
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