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In a first, the National Housing Bank (NHB) has released the names of 48 housing finance companies (HFCs) that received refinance in the past financial year, including LIC Housing Finance, PNB Housing Finance, and Piramal Capital. This move aims to enhance transparency and prevent misuse of NHB's name. It follows concerns over Aviom India Housing Finance, which allegedly used outdated NHB sanction letters to mislead lenders. NHB has also tightened refinance norms for under-construction housing loans, now requiring third-party checks to ensure projects are below 50% completion before disbursal. These steps signal a stronger regulatory stance on financial discipline and sector integrity.
The National Housing Bank has, for the first time, publicly disclosed the list of housing finance companies (HFCs) that received refinance assistance during the past financial year. This unprecedented move is part of NHB's efforts to increase accountability and safeguard against misuse of its name and facilities by financial institutions. Advertisement
The list features 48 names, including well-known entities such as LIC Housing Finance, PNB Housing Finance, Aadhar Housing Finance, Can Fin Homes, India Shelter Finance Corporation, and Piramal Capital & Housing Finance.
This disclosure comes against the backdrop of serious concerns raised by banks and financial institutions over fraudulent practices by Aviom India Housing Finance. The company had reportedly been using outdated refinance sanction letters from NHB, some of them dating back nearly three to four years?to obtain fresh loans from other lenders. This led to confusion, as multiple lenders were misled into believing that Aviom had active NHB backing, when in fact, those sanctions were no longer valid.
Along with the public disclosure, NHB has tightened its norms governing refinance for under-construction housing loans. Under the revised guidelines, NHB will no longer offer refinance unless the construction progress is less than 50% at the time of the first disbursement. This condition must be verified through a third-party technical inspection.
NHB?s proactive measures also reflect its intent to act not just as a refinancing authority but as a regulator invested in the integrity and health of the housing finance sector. Its recent actions underscore a shift in institutional thinking emphasizing transparency, technical due diligence, and financial discipline across the board.
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