Housing finance companies News

Some banks were charging interest for the entire month, rather than charging interest only for the period for which the loan was outstanding.

The number of loans given too was up by 17 percent during the calendar year 2022.

A rising interest rate scenario presents a dilemma for housing finance companies (HFC)s. Mortgage lenders normally increase the EMIs while keeping tenures constant or do it vice-versa. Lenders usually extend the tenure first to keep the borrower's monthly debt burden in check.

The government has proposed a framework for addressing the liquidity constraints of Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs) through a Special Liquidity Scheme.

Reserve Bank of India said that it will provide required liquidity backstop to the banks against their excess G-sec holdings.

A statement by the Corporate Affairs Ministry said that the decision has been taken in pursuance of the budget announcements for 2019-20 by Finance and Corporate Affairs Minister Nirmala Sitharaman.

If approved, then the new norms will follow the government's scheme to provide a one-time partial credit guarantee to PSBs for purchase of pooled assets of financially sound NBFCs.

Housing finance companies (HFCs) are likely to need around Rs 9,000-16,000 crore of external capital over the next three year to grow at 20-22 per cent, said a report on Monday.

Providing relaxation for housing finance companies, the Corporate Affair Ministry has exempted such entities from filing financial statements in XBRL format.

LIC Housing Finance surged 4.63 percent while Dewan Housing Finance Corporation rose 4.21 percent on BSE.

Housing price inflation has slipped to nearly four-year low to below 4 percent, a survey by the Reserve Bank said on Thursday.

The incentives announced by the RBI "are likely to have a positive impact on banks' competitive position vis-a-vis the housing finance companies", it said in a note.