Housing loan rules, gathered in one place

This rule book applies to every housing finance company registered under Section 29A of the NHB Act.

named by the words Housing Financ · RBI Para 3 · Read it in place

At least 50% of that housing finance must go to individual borrowers.

named by the words housing financ · RBI Para 10 · Read it in place

The rules are called the Reserve Bank of India Housing Finance Companies Directions, 2025.

named by the words Housing Financ · RBI Para 1 · Read it in place

An HFC's Tier 1 and Tier 2 capital must total at least 15 per cent of risk weighted assets.

named by the words housing financ · RBI Para 20 · Read it in place

The HFC may not charge a pre-payment levy on a floating-rate housing loan closed early.

named by the words housing loan · RBI Para 163 · Read it in place

For a construction loan, the HFC first obtains a copy of the sanctioned building plan.

named by the words home loan · RBI Para 179(1) · Read it in place

Disbursal of a housing loan follows the stages of construction, not paid upfront.

named by the words housing loan · RBI Para 183 · Read it in place

No single broker may carry more than five per cent of a year's brokered deals.

named by the words housing financ · RBI Para 74(6) · Read it in place

That five per cent broker limit does not apply if total yearly transactions are under ₹20 crore.

named by the words housing financ · RBI Para 74(6) · Read it in place

For a loan up to ₹30 lakh, the loan-to-value ratio may not exceed 90 per cent.

named by the words housing loan · RBI Para 58 · Read it in place

Land taken over on default is sold within three years, unless NHB extends that.

named by the words housing financ · RBI Para 65 · Read it in place

The HFC's total exposure to the capital market may not exceed 40 per cent of its net worth.

named by the words housing financ · RBI Para 66 · Read it in place

Within that, direct shares and equity mutual funds may not exceed 20 per cent of net worth.

named by the words housing financ · RBI Para 67 · Read it in place

Investment in the shares of one other HFC may not exceed 15 per cent of its equity capital.

named by the words housing financ · RBI Para 59 · Read it in place

Standard housing loans at teaser rates carry a 2% provision on the outstanding amount.

named by the words housing loan · RBI Para 48 · Read it in place

Ordinary standard housing loans need a general provision of 0.4% of the outstanding.

named by the words housing loan · RBI Para 48 · Read it in place

The auditor must report certain non-compliance directly to NHB and RBI.

named by the words housing financ · RBI Para 127(3) · Read it in place

The HFC is encouraged to use Lok Adalats for housing loans under ₹10 lakh.

named by the words housing loan · RBI Para 170(8) · Read it in place

RBI or NHB can fine the HFC for any breach of the Act or these directions.

named by the words housing financ · RBI Para 235 · Read it in place

These directions repeal all earlier RBI instructions to housing finance companies.

named by the words Housing Financ · RBI Para 240 · Read it in place

Housing finance means financing to construct, purchase, renovate or repair a home.

named by the words Housing Financ · RBI Para 10(8) · Read it in place

An HFC needs at least ₹20 crore of net owned funds to carry on housing finance.

named by the words housing financ · RBI Para 16 · Read it in place

The home loan ceiling for one person depends on whether the bank's net worth reaches ₹100 crore. RBI's own table beside this point gives both amounts.

named by the words Home loan · RBI Para 12 · Read it in place

A home loan and an ordinary loan to the same person are added together, not counted apart.

named by the words housing loan · RBI Para 12 · Read it in place

Once a home loan passes the ordinary ceiling, that person gets nothing further.

named by the words housing financ · RBI Para 12 · Read it in place

All housing lending together stops at 5 percent of total assets.

named by the words housing financ · RBI Para 16 · Read it in place

Loans to builders of housing projects are allowed inside the same five per cent.

named by the words housing financ · RBI Para 18 · Read it in place

From the third home loan onward the bands rise to 30 to 60 per cent.

named by the words Housing Loan · RBI Para 16 · Read it in place

A home loan of ₹3 crore or more adds five percentage points of weight.

named by the words home loan · RBI Para 16 · Read it in place

A qualifying home loan gone bad weighs 100 per cent net of provisions.

named by the words home loan · RBI Para 17 · Read it in place

A first or second home loan takes light weights that rise band by band with loan to value.

named by the words housing loan · RBI Para 16 · Read it in place

Retail loans in a currency the borrower does not earn get 1.5 times the weight, capped at 150.

named by the words home loan · RBI Para 20 · Read it in place

An NRI's housing loan gets the same amount, margin and repayment period as a resident's.

named by the words housing financ · RBI Para 4 · Read it in place

This housing loan cannot be credited to the borrower's foreign-currency account.

named by the words housing loan · RBI Para 4 · Read it in place

The loan must follow the company's own staff loan scheme, the same as for resident staff.

named by the words Housing Loan · RBI Para 5 · Read it in place

A housing loan must satisfy both the loan limit and the cost of the dwelling.

named by the words housing loan · RBI Para 13 · Read it in place

A housing loan to the bank's own employee does not count as priority sector.

named by the words Housing loan · RBI Para 13 · Read it in place

A housing loan backed by long term bonds does not count, because those are already excluded.

named by the words Housing loan · RBI Para 13 · Read it in place

You must provide one per cent on guarantee cover for housing loans above ₹20 lakh.

named by the words housing loan · RBI Para 54(1) · Read it in place

The maximum loan-to-value ratio for cover on big loans has been cut from 90 to 80 per cent.

named by the words housing loan · RBI Para 89 · Read it in place

For loans up to ₹20 lakh, the LTV ratio may go up to 90 per cent.

named by the words housing loan · RBI Para 89 · Read it in place

A housing finance company meets the reserve requirement of the housing bank law instead.

named by the words housing financ · RBI Para 8(3) · Read it in place

A housing finance company reports its dividend to the National Housing Bank within a fortnight.

named by the words housing financ · RBI Para 14 · Read it in place

These rules cover a housing finance company unless its own rules say otherwise.

named by the words Housing Financ · RBI Para 4 · Read it in place

Where the housing finance rules clash with these, those rules win.

named by the words Housing Financ · RBI Para 4 · Read it in place

The bonds may also fund individual affordable housing loans.

named by the words housing loan · RBI Para 4 · Read it in place

Buying such loans from another bank needs RBI's prior approval to count.

named by the words housing loan · RBI Para 5 · Read it in place

For residential mortgage backed notes the originator keeps five per cent.

named by the words residential mortgage · RBI Para 12 · Read it in place

For residential mortgage backed deals the figure is 25 per cent.

named by the words residential mortgage · RBI Para 86 · Read it in place

Housing loans to individuals outside priority sector cannot cross 25 per cent of total loans.

named by the words housing loan · RBI Para 3.4.2 · Read it in place

Loan repayments made from abroad count as foreign exchange for this purpose.

named by the words Home loan · RBI Para 8(5) · Read it in place

A housing finance company regulated by the National Housing Bank may also borrow.

named by the words Housing Financ · RBI Para 2 · Read it in place

Credit institutions include commercial banks, co-operative banks, NABARD, SIDBI and most NBFCs.

named by the words Housing Financ · RBI Para 4 · Read it in place

The group draws members from every kind of lender and every bureau.

named by the words Housing Financ · RBI Para 23 · Read it in place

Only deposit-taking NBFCs and deposit-taking housing finance companies are covered.

named by the words Housing Financ · RBI Para 3 · Read it in place

A housing finance company registered under the National Housing Bank Act is also covered.

named by the words Housing financ · RBI Para 3 · Read it in place

Housing finance companies count as finance companies here, so these rules cover them too.

named by the words Housing Financ · RBI Para 12 · Read it in place

The group draws members from every kind of lender and every bureau.

named by the words Housing Financ · RBI Para 24 · Read it in place

All India financial institutions must set aside up to 1 percent for standard assets, depending on the sector.

named by the words housing loan · RBI Para 65(2) · Read it in place

Co-lending partners are commercial banks excluding small finance, local area and regional rural banks, all India financial institutions and NBFCs.

named by the words Housing Financ · RBI Para 96(1) · Read it in place

The group draws members from every kind of lender and every bureau.

named by the words Housing Financ · RBI Para 23 · Read it in place

The group draws members from every kind of lender and every bureau.

named by the words Housing Financ · RBI Para 24 · Read it in place

Home loans to individuals outside priority sector stop at 25 per cent of total loans.

named by the words housing loan · RBI Para 11 · Read it in place

The group draws members from every kind of lender and every bureau.

named by the words Housing Financ · RBI Para 24 · Read it in place

A housing loan must be repaid within 20 years, counting any repayment holiday.

named by the words Housing loan · RBI Para 116 · Read it in place

The group draws members from every kind of lender and every bureau.

named by the words Housing Financ · RBI Para 24 · Read it in place

Banks must set aside up to 1 percent for standard assets, depending on the sector.

named by the words housing loan · RBI Para 64(2) · Read it in place

The group draws members from every kind of lender and every bureau.

named by the words Housing Financ · RBI Para 24 · Read it in place

Banks must set aside up to 1 percent for standard assets, depending on the sector.

named by the words housing loan · RBI Para 76(2) · Read it in place

The group draws members from every kind of lender and every bureau.

named by the words Housing Financ · RBI Para 24 · Read it in place

Banks must set aside up to 1 percent for standard assets, depending on the sector.

named by the words housing loan · RBI Para 80(2) · Read it in place

The group draws members from every kind of lender and every bureau.

named by the words Housing Financ · RBI Para 24 · Read it in place

Infrastructure and housing loans bought from others need prior Reserve Bank approval to count.

named by the words housing loan · RBI Para 5(5) · Read it in place

A housing loan that turns bad carries 100 per cent, after taking off provisions.

named by the words housing loan · RBI Para 68 · Read it in place

Time deposits are taken by the bank itself, or by a permitted housing finance company.

named by the words housing financ · RBI Para 17(2) · Read it in place

Housing finance, core investment, infrastructure and mortgage guarantee companies are outside these rules.

named by the words Housing financ · RBI Para 3(1) · Read it in place

Banks, Primary Dealers, NBFCs and all India financial institutions can seek direct access.

named by the words Housing Financ · RBI Para 4 · Read it in place

A home loan is provisioned at 0.25% at first, rising to 1.50% if risk grows.

named by the words Housing loan · RBI Para 82 · Read it in place

A housing finance company's own auditor still follows RBI's separate housing finance company rules.

named by the words Housing Financ · RBI Para 3 · Read it in place

These Directions apply to every non-banking financial company.

named by the words Housing Financ · RBI Para 3 · Read it in place

Every deposit-taking housing finance company is covered as well.

named by the words Housing Financ · RBI Para 3(3) · Read it in place

A housing finance company keeps reporting cyber incidents to NHB and not to RBI.

named by the words Housing Financ · RBI Para 141 · Read it in place

All other property lending stops at five per cent of total loans.

named by the words housing loan · RBI Para 12 · Read it in place

A bank over the property limit may take no fresh property exposure until it has room.

named by the words housing loan · RBI Para 15 · Read it in place

Other real estate exposure cannot cross five per cent of total loans and advances.

named by the words housing loan · RBI Para 3.4.3 · Read it in place

Consumer credit, including personal loans, carries a 125 per cent risk weight.

named by the words housing loan · RBI Para 71 · Read it in place

These rules bind a finance company that meets the size test set out here.

named by the words Housing Financ · RBI Para 3(1) · Read it in place

These Directions apply to every non-banking financial company.

named by the words Housing Financ · RBI Para 3 · Read it in place