New Delhi: The National Housing Bank has increased the refinancing limit to ₹ 30,000 crore from the existing limit of ₹ 24,000 crore in order to address the liquidity crisis in the housing finance industry. This would increase the availability of funds for housing finance companies, the government said in a statement.
The extension comes at a time the lack of liquidity among housing finance companies has triggered fears of defaults, resulting in the stock prices of these companies falling. The refinance window is aimed at providing funds to housing finance companies at cheaper interest rates.
Starting July, the NHB has disbursed ₹ 8,835 crore of the ₹ 24,000 crore refinancing window to housing finance companies.
The NHB is the regulator of housing finance firms and is tasked with providing them financial assistance.