Housing Finance Development Corporation Ltd (HDFC) clarified on Tuesday that the latest circular of the National Housing Bank (NHB) which advised housing finance companies (HFCs) to desist from providing loans to finance subvention schemes offered by builders to sell homes is unlikely to impact growth of the individual loan business.
HDFC said it disburses loans to individuals based on the stages of construction and that it has adequate mechanism for monitoring the progress of housing projects. Customer consent is obtained prior to the release of each stage of payment to the developer, the mortgage lender added. HDFC’s exposure to housing loan products involving interest subvention schemes offered by developers is negligible, it said. “The corporation is of the view that there is unlikely to be any significant impact on the growth of its individual business due to the circular,” HDFC said.
