The Hindu : National : National Housing Bank scheme for tsunami victims

Online edition of India's National Newspaper
Saturday, Jan 01, 2005

National

National

National Housing Bank scheme for tsunami victims

By Our Staff Correspondent

NEW DELHI, DEC. 31. The National Housing Bank (NHB) has announced a concessional scheme to provide financial assistance to the people affected by tsunami. The scheme is applicable for construction, repairs and renovation of houses and housing-related infrastructure.

According to the NHB chairman and managing director, P.K. Gupta, assistance will be provided through refinance and direct finance routes. A sum of Rs. 100 crores has been earmarked for the purpose. The assistance will be by way of refinance to banks and Housing Finance Companies (HFCs) against loans provided to individual borrowers affected by the tidal waves. Project assistance will also be extended to public agencies such as housing boards, development authorities, municipal corporations.

Refinance will be extended at a concessional rate of 5 per cent and project finance at 5.5 per cent. Banks and HFCs will not be allowed to charge higher than 6.5 per cent from the ultimate borrowers, according to Mr. Gupta. Loans will be extended for 15 years, including two years of moratorium on payment of principal and interest capitalisation during the construction period.

Procedural simplicity with banks and HFCs will be allowed to claim refinance under this scheme for disbursal made by them on or after January 1, 2005. Detailed guidelines will be issued shortly.

Printer friendly page
Send this article to Friends by E-Mail

National