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.
Ceiling on the cost
The cost of the dwelling unit may not exceed Rs 20 lakh. In case land is being acquired, the land cost may be reckoned as Margin Money. Otherwise the cost of land should not be included in the project cost.
Quantum of bank loan for individual (maximum)
For new houses Rs. 15 lakh
For repairs/renovation Rs. 5 lakh
Refinance Disbursements
Rate of interest on NABARD Refinance
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) |
100% |
Moratorium
Not more than 18 months from the date of disbursement of first instalment.
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