"The National Housing Bank (NHB) has played a crucial role in supporting the government's initiative of providing shelter to the mass population of our country by promoting a sound housing finance system, developing hous

The National Housing Bank (NHB) plays a crucial role in the growth of housing infrastructure in India through several key functions: Promotion and Development: NHB fosters the growth of housing finance institutions and develops the overall housing finance market. This includes promoting housing finance, facilitating affordable housing, and supporting infrastructure development. Refinancing: It offers refinance assistance to Primary Lending Institutions (PLIs) for their housing loans to individuals, as well as for loans to other institutions for housing finance and construction finance, particularly for affordable housing projects. Supervision of HFCs: Although regulatory powers shifted to RBI in 2019, NHB continues to supervise Housing Finance Companies (HFCs) to ensure their financial health and adherence to prudential norms. Secondary Mortgage Market Development: NHB supports the development of the secondary mortgage market, which facilitates the buying and selling of mortgages. Resource Mobilization: It devises schemes to lend at affordable rates and mobilizes resources from provident funds, insurance funds, mutual funds, etc., for house building activities. NHB also develops innovative instruments to mobilize domestic savings. Project Finance and Equity Support: NHB helps in project finance, equity support, securitization, and guarantee as part of its activities, thereby contributing to the overall housing infrastructure development.