Real Estate News
NHB wants housing finance firms to link loan disbursal to stages of construction
Fearing diversion of funds by builders under ‘innovative’ financing schemes — ‘10:80:10’ and ‘5:90:5’ — offered to home buyers, the National Housing Bank has warned housing finance companies against making upfront loan disbursals without linking the same to the stages of construction of housing projects or else they could attract penal provisions. National Housing Bank (NHB), the regulator of housing finance companies (HFCs), said it has come to its notice that some HFCs are making such upfront disbursals. Some HFCs have also approved certain projects for the advance disbursement facility.
Source: The Hindu Business Line, July 7, 2016, Mumbai
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