NHB targets Rs 17,000 cr home loans by June

National Housing Bank (NHB) on December 8 said it expects to disburse home loans of up to Rs 9,000 crore in the next six months to meet its annual disbursal target of Rs 17,000 crore by June next year.

NHB Chairman and Managing Director RV Verma told a leading news agency on the sidelines of National Real Estate Development Council (Naredco) convention in Delhi that so far the bank has disbursed about Rs 8,000 crore.

NHB's budget is to give loans of Rs 17,000 crore from July to June period. Verma said he is confident that NHB will be able to meet its target. Out of this entire disbursement target, about 90 per cent lending will be for houses priced below Rs 25 lakh, he added. He said NHB usually provides loans to housing finance companies to be used for refinancing of individuals' home loans and to promote affordable housing.

NHB offers loans at different rates and its average interest rate is around 9.25 per cent, Verma said. On rural housing, he said that NHB offer special concessions for rural and low income house group. For the low income group (LIG) houses priced up to Rs 5 lakh, the interest rate is 8.5 per cent. It also offers fixed interest rate on LIG for 15 years, he said.