An Overview of National Housing Bank (NHB)

Sujan Afi S

In India we have more than half of the population who are underprivileged. The society has been divided into the ‘haves’ and the ‘have-nots’. Though the upper class of the society has the advantage of getting almost all the ease of life, but the lower class is deprived of many things. 

Does that mean that they don’t have the right to get the advantages that the other half of the society gets? Does that mean that they will have to suffer silently? Absolutely not!

The government of India has come up with several schemes and opportunities for the upliftment of the backward class people of the society. 

Consider yourself to be a member of a middle-class family. You have a dream of getting into Real Estate sector. You consult with several well-wishers of yours who suggest you to get into business of construction. Your parents encourage you to do that. You get into a partnership with some of your friends and think of starting a construction business.

Nevertheless, there is scarcity of capital, the most important thing needed. Will you give up? Will you stop dreaming?

No, never! Why?

Read out this article to know about National Housing Bank (NHB) that will provide loans to people like you and me!

The zenith administrative body for general guidelines and licensing of housing finance organizations in India is the National Housing Bank (NHB). It is under the locale of the Ministry of Finance, Government of India.

The National Housing Bank was formed under the administration of the Ministry of FinanceGovernment of India on 9th July 1988 under the National Housing Bank Act, 1987. It has its headquarter in New Delhi. Its MD and CEO is Shri Sriram Kalyanaraman.

NHB aims at being the key agency to encourage housing finance institutions at local as well as regional levels. It also desires to bestow financial or any other support required by those types of institutions.

The Finance Act, 2019 has modified the National Housing Bank Act, 1987. The right of regulation of Housing Finance Companies (HFCs) is bestowed upon the Reserve Bank of India post the modification.

The primary objective of National Housing Bank is to saddle and elevate the market possibilities to serve the lodging needs of all portions of the populace with special emphasis on people having low and moderate income.

It also aims at the following:

  1. Supervising and addressing the problems related Housing Finance Companies
  2. Development and promotion
  3. Finances

The leaders of Housing Finance for the Seventh Five Year Plan (1985–90) witnessed the lack of any proper body that will help people or any other construction agency in case they need a huge amount of money for long-term purposes. Needless to say, the undertaking or project should be related to the construction of any kind of infrastructure.

Hence, the leaders suggested the formation of National Housing Bank so that the grievances of the mass are properly taken care of. One point to be noted here is that NHB doesn’t deal with individuals directly. It provides loans to a group, agency, and the like. 

Our respected Prime Minister declared the decision of the formation of National Housing Bank on 28th of February, 1987. On that very day the Union Budget for 1987–88 was also being announced.

After that the National Housing Bank Bill was also passed; it roughly provided the framework of the making of National Housing Bank. It became an act after the honourable President signed the bill on 23rd of December 1987.

After getting a glimpse of the background of NHB, let us have a look at some of the objectives of the same:

  1. To have an organization of committed lodging finance foundations to serve different locales and distinctive income groups.
  2. To make lodging credit more reasonable.
  3. To control the workings of lodging finance organizations dependent on regulatory authority inferred under the Act. 
  4. To energize increase of supply of buildable land and furthermore fabricating materials for lodging and to improve the lodging stock in the country. 
  5. To urge public offices to arise as facilitators and providers of land for lodging.

If you really want to fly, there is nobody who can stop you. You will find your own way out. I hope that you have got an idea about where to go if you think of getting yourself a housing loan. For further information on NHB, you can visit their official website.

Apart from that, you can find more information on Real Estate related topics in the official website of Roodland India, one of the most prominent organizations of Real Estate at present.

To have your questions and doubts answered, you can always mail us at

We have a resolute team to address all your queries at the earliest.


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