In order to promote more and more affordable housing facilities to people, National Housing Bank (NHB) has decided to provide refinance to housing finance companies (HFCs) at concessional rates. As a result, it is expected that low income households would also be able to access housing finance facilities.

HFCs always approach NHB for refinance at concessional rates for home loans. But this is mostly after two to three years of start of operation of the HFC. This time though, NHB is looking towards the idea of offering concessional refinance to HFCs within one year of the start of their operations.

"We are considering the issue. We are taking a view on that," R. V. Verma, the chairman and managing director (CMD), NHB said.

According to Verma, inability of low and middle income households to get loan faciltiy stops developers from being able to construct affordable housing units. A low-income housing unit is one with a maximum selling price of Rs 15 lakh.

NHB recently decided to aid in refinancing of NBFCs too.