National Housing Bank: In a big relief to distressed housing finance companies, National Housing Bank (NHB) today announced a credit line of Rs 10,000 crore. This credit line will be used by non-banking finance companies and housing finance companies to lend to home loan borrowers.
This step by the NHB is in addition to Rs 1.34 lakh crore liquidity made available by the Reserve Bank to NBFCs following the finance minister Nirmala Sitharaman’s budget announcement that her government will support the beleaguered shadow banking companies.
In her maiden budget, Nirmala Sitharaman announced that the Union government will stand guarantee if the public sector banks acquire the liabilities of non-banking finance companies to ease the pressure on them. The guarantee was limited to those NBFCs that still have quality rating.
In addition to these measures, Nirmala Sitharaman and Anurag Thakur, the minister of state for finance will meet the heads of public sector banks and major private sector lenders.
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National Housing Bank will provide money to NBFCs
Reserve Bank of India had unveiled measures for banks to avail additional liquidity of Rs 1.34 lakh crore subsequent to the presentation of Union budget on July 5. The backstop guarantee to banks for taking over NBFC portfolios has become effective.
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“Banks will be utilising this guarantee support as per the contours of the scheme,” said the ministry of finance.
National Housing Bank also announced Rs 10,000 crore liquidity facility for housing finance companies for affordable sector. This facility is in addition to the two existing refinance schemes of NHB.
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