Rural Housing Scheme
With a view to supplementing the efforts of Government of India, State Governments, National Housing Bank and Banking Sector in augmenting the resources for the Rural Housing segment, NABARD has included Rural Housing as an eligible activity for extension of refinance (investment credit) to the eligible banks w.e.f. 01 April 2001. The broad terms and conditions for the refinance scheme are as under :
Area of Operation
Refinance will be provided to all eligible banks for finance extended by them to housing projects in the 'rural' areas only. As per NABARD Act, Rural area means the area comprised in any village and includes the area comprised in any town, the population of which does not exceed 50000 or such other figure as the RBI may specify from time to time.
Eligible Borrowers
- Individuals
- Co-operative Housing Societies
- Public Bodies
- Housing Boards/ Housing Development Authorities/ Improvement Trusts
- Local Bodies
- Voluntary agencies and NGOs
- Housing Finance Companies registered with NHB
Financing made under Golden Jubilee Rural Housing Scheme and Schemes of the Govt. of India, Ministry of Rural Development shall also be eligible for NABARD refinance.
Eligible Purposes
Construction of New Houses as well as Repairs/Renovation of existing houses in rural areas/ Rainwater Harvesting Structures/ Sanitary Latrines, etc.
Security/ Margin
As per RBI / NHB guidelines issued from time to time.
Quantum of bank loan for individual (maximum)
For new houses |
- Rs.20 lakh (In case of banks having net worth Rs.100 crore & above the limit is Rs.30 lakh).) |
For repairs/renovation |
- Rs.1 lakh |
Rate of interest on NABARD Refinance:
As decided by NABARD from time to time.
Repayment period
For new houses - not more than 15 years
For Repairs/ Renovation - not more than 7 years
Quantum of NABARD Refinance
No. |
Purpose/Region |
Quantum of refinance (% to bank loan)- Automatic Refinance |
I |
North Eastern Region and Sikkim |
100% to all AGencies |
II |
Other Regions |
|
1 |
Commercial Banks and Scheduled Primary (Urban) Cooperative Banks |
90% |
2 |
State Cooperative Banks |
90% |
3 |
Regional Rural Banks |
90% |
4 |
State Cooperative Agriculture and Rural Development Banks |
100% |
III |
All the Districts covered by District Rural Industries Project (DRIP) for all agencies |
100% |
Moratorium
Not more than 18 months from the date of disbursement of first instalment. |
