NHB plans new loan norms

Published: 13th October 2012 12:37 PM  |   Last Updated: 13th October 2012 12:37 PM   |  A+A-

Undeterred by Housing finance regulator National Housing Bank is planning to soon come out with norms on loan securitisation in the current fiscal, CMD R.V. Verma said on Friday.

“The norms will be on the lines of guidelines announced by Reserve Bank of India for loan securitisation,” he told Express.

Under loan securitisation, various types of debt such as residential and commercial mortgages, auto loans or credit card debt obligations are pooled and sold as bonds and pass-through securities to various investors. The principal and interest on the debt, underlying the security, is paid back to the various investors regularly. Securities backed by mortgage receivables are called mortgage-backed securities while those backed by other types of receivables are asset-backed securities.

Verma said NHB is planning to focus on rural housing as part of its refinancing options in the current financial year. NHB’s fiscal runs from July 1 to June 30.

It is targeting to mobilise Rs 14,500 crore in the current fiscal through various instruments such as market borrowings, bonds, multilateral loans etc.


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp