The normal refinance rate for NHB funds is 9.10%-9.15%. However as a special case, NHB is planning to offer funds to BMB @ 8.50%-8.75%.
The same has been discussed internally by NHB team, and they are waiting for a formal application from BMB.
The regulator, which normally only refinances home loan portfolios of banks and other housing finance companies, is looking at giving advance to Bharatiya Mahila Bank since the bank is new and does not have a loan portfolio.
Since it is a new bank, it may not have high deposits to start with. Therefore instead of refinancing the preferred mode is Advance.
The National Housing Bank (NHB) is a state owned bank and regulation authority in India, created on July 8, 1988 under section 6 of the National Housing Bank Act (1987).
NHB is making all efforts to popularize Reverse Mortgage. Reverse mortgage is a financial product that enables senior citizens (60 +) who own a house to mortgage their property with a lender and convert part of the home equity into tax-free income without having to sell the house.
- Energy-efficient homes: NHB seeking €100 m from German bank (panchabuta.com)
- What is a Reverse Mortgage? – Ask Bruce Coleman, Vancouver Mortgage Broker (cminfo.ca)