What is the role of NHB in housing finance?

The National Housing Bank (NHB) is a statutory body set up in 1988 under the National Housing Bank Act, functioning as the apex regulatory and refinancing institution for the housing finance sector in India.

Core Functions of NHB

  • Regulation and Supervision: Regulates and supervises Housing Finance Companies (HFCs) registered with NHB (pre-2019, now shared with RBI).
  • Refinancing: Provides low-cost refinance to commercial banks, HFCs, and other PLIs for home loans — especially for priority sector and affordable housing.
  • Promotion and Development: Funds research, capacity building, and market development in housing finance.
  • Implementation of Government Schemes: Manages PMAY-CLSS disbursements and National Urban Housing Fund operations.

NHB RESIDEX

  • NHB RESIDEX is India's official residential property price index.
  • Tracks price movements in 50+ cities quarterly.
  • Used by policymakers, researchers, and market participants as an authoritative price reference.
  • Provides city-level and segment-level data (under-construction vs. resale properties).

NHB is the institutional backbone of India's housing finance infrastructure, channelling government policy intent into market reality through refinancing, regulation, and promotion. Its role in expanding affordable housing finance particularly through PMAY and NUHF remains critical to India's homeownership goals.

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