National Housing Bank

The National Housing Bank has been set up under the National Housing Bank Act of 1987, which was passed on 9th July, 1988. It is wholly owned by the Reserve bank of India and was established to encourage housing- finance institutions and provide them with financial support.

The National Housing Bank also provides several other channels of support for housing-finance institutions, by dint of the authority invested by the National Housing Bank Act. For example, the National Housing Bank can give directions to the housing finance institutions to ensure that their growth takes along appropriate tracks. Besides, the National Housing Bank also makes advances and gives loans to scheduled banks and formulates schemes that lead to the proper use of resources for housing projects.

The various objectives of the National housing bank are:

• To encourage healthy system for housing finance and which meets the needs of all the segments of the society
• To encourage housing finance institutions
• To gather resources and distribute them for housing projects
• To make affordable the credit taken for housing

The places where National housing bank have offices are:

• Head office in New Delhi
• Regional office in Hyderabad
• Regional office in Mumbai

The National Bank for Housing gives registration certification to companies so that they can carry out the business of financing houses. The National Housing Bank also has a training division, besides its lending operations. This division trains officials who are working in the housing finance and housing areas in order to improve their management capabilities. The National housing bank has helped enormously in the growth of the housing sector in India. It needs to work in close coordination with the Reserve Bank of India and the Indian government to ensure the upkeep and feasibility of housing projects in India.

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