Project Finance

• State Housing Boards/Improvement Trusts • State Slum Clearance Boards/Authorities • Development Authorities • Municipal Corporations/Councils, Urban Local Bodies • New Town Development Agencies • Local Authorities for housing & urban development • Housing Welfare Organizations of Central and State Government employees like CGEWHO, AWHO, AFNHB, IRWO etc. • Other Agencies set up for specific housing programmes. • Agencies set up by government to provide housing to specific target groups like state Police Housing Corporations. • State/Central governments or their department for supplementing funds requirements for their employees’ housing including rental/ownership housing. Any other state / central government agencies / department / bodies etc. • Other corporations set up by state/central governments to meet the housing needs of different segments of people. • SPVs set up by public housing agencies / public financial institutions, solely or jointly with private sector either for specific project or on a continuing basis. • Affordable Housing projects under Public Private Partnership models in line with State Housing Policies wherein Public Agencies appointed as a nodal agency for construction/ implementing large scale construction of Affordable Housing (with focus on EWS & LIG housing) by involving Private developers in the construction of EWS/LIG categories of houses on a turnkey basis. The following projects of Public Housing Agencies will be eligible for financial support: • Slum rehabilitation/slum improvement Projects. • Residential Housing Projects. • Township cum housing development project. • Land acquisition for the purpose of plotted development, township and housing development or housing construction. • Turn-key housing projects • Programme lending for special housing projects undertaken consequent to natural calamities. • Infrastructure development for housing settlements. • Rental housing projects Water Sanitation: The Bank may extend financial assistance for Water and Sanitation Programmes undertaken by eligible entities out of the Special Fund. • Mortgage / charge over immovable property / charge over receivables / Bank guarantee / Government guarantee / Fixed Deposit Receipts of Scheduled Commercial Banks / Corporate guarantee • Any other security, as acceptable to NHB on a case-to-case basis Extent of Security Minimum 100% of the amount of loan. Validity of Sanction The sanction shall be valid for six months. Rates of Interest – A. For General Fund The Rate of Interest in case of Public Agencies shall be arrived at by adding Tenor Markup of 20 bps and Risk Premium of 30 bps to the Benchmark Rate i.e., NHB’ s PLR. Concession of up to 30 bps in case of availability of Government Guarantee and up to 10 bps in other cases can also be considered, subject to approval of the Sanctioning Authority. The Rate of Interest for funding in case of Construction financing to Corporates (Public Sector Undertakings-Central and State, for their staff residential housing projects) shall be arrived at by adding Tenor Markup (0.25% for 1 year reset) and Risk Premium (from 0.30% to 1.40% depending upon Internal Credit Rating) to the Benchmark Rate i.e., NHB’ s PLR. Concession of upto 1% can also be considered, subject to approval of Sanctioning Authority. However, the final rate of interest shall not be below Bank’s PLR. The Rate of Interest in case of Construction Finance (CF) to Builders/Developers shall be arrived at by adding additional premium ranging from 1.50% to 5%. The degree of additional premium will depend upon various factors viz., stages of the. project, status of regulatory approvals/permissions, value of available security, type of security & land available, achievement of milestones etc. Under this fund the Bank may extend financial assistance for Slum Redevelopment Projects & low-cost housing for EWS/LIG projects at blended cost of funds of immediately preceding quarter. The Rate of Interest shall be arrived at by