The housing finance regulator will mobilise this amount before end March this fiscal and once the lender is finalised and the term sheet is ready NHB will again go back to RBI as the funds are being raised under the approval route," R.V. Verma, Chairman & Managing Director, NHB told Business Line.
Moreover, Verma said that NHB is in talks with only one lender and is not looking at several lenders (no syndication) for raising this amount.Raising ECB will diversify NHB's resource base and generate confidence among international investors in the Indian housing finance market.
Low-income housing is a new thrust area for NHB, which last year slashed refinance rates on loans up to Rs 5 lakh.The Government has already decided to allow ECBs for low-cost housing projects.
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