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.


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.

Disclaimer: This insight is meant for informational purpose only and should not be considered as an advice or opinion, or otherwise, whatsoever. Author does not intend to advertise its services through this insight, and not responsible for any error or omission in this insight or for any action taken based on its contents, its based on mentioned circular.

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