Disbursement of Housing Loan to Individual Linked to stages of Construction

National Housing Bank (NHB) policy circular no. 96/2019-20 dt. July 19, 2019

Several complaints for offering loan

1. Housing Finance Companies (HFC) were advised while introducing any kind of product ‘Customer suitability’ and ‘Appropriateness’ issues should be taken into account by the Cos.

2. Frauds being committed by certain builders using subvention schemes have also been brought to the notice of NHB.

3. HFCs are advised to DESIST (stop) from offering Loan Products involving SERVICING of loan dues by Builders / Developers on behalf of Borrowers.

Note;

1. Merely obtaining borrower consentand release of funds by the company without linkage to the stage of construction will be seen as dereliction (negligence) of duty of the HFC

2. HFCs while extending finance should take into account the stipulations laid down under RERA, as applicable.

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