Housing Finance Company Registration


Package Inclusion :

  • Collection & Preparation of documents need to be submitted with NHB;
  • Filing of Housing Finance Company License application with the NHB;
  • Business Plan for 5 years;
  • Product and Loan Plan;
  • End to End Liaisoning with the NHB;

Housing Finance Company Registration

What is the Housing Finance Company?

The Housing Finance Company is a type of Non-Banking Financial Company (NBFC) which is engaged in the principal business of “financing of acquisition or construction of houses”. Generally, Housing Finance Companies are those types of companies who have the main object of carrying business of providing finance for housing whether directly or indirectly. They are regulated by the National Housing Bank (NHB).

What is the Housing Finance Company Registration?

As per section 29A of the National Housing Bank Act, 1987 it is compulsory for every proposed housing finance company to procure a certificate of registration from NHB before initiating activities related to housing finance.

For Housing Finance Company registration, you can also take help of Enterslice as it has filed multiple applications with the NHB for HFC license.

[HFCs cannot conduct business of housing finance without obtaining a Certificate of Registration (CoR) from NHB. Conduct of business without obtaining certificate of registration is an offence punishable under the provisions of the National Housing Bank Act, 1987. NHB can also file application for winding up of such HFCs, under section 33B of the said Act.]

Regulatory Authority for Housing Finance Company

In the Housing Finance Sector, NBH plays the most significant role. In terms of integration with the debt and capital markets, the housing finance sector in India has entered into the second phase of development.

To maintain the credibility and stability in terms of resource development, policy development and institution building of the housing finance sector in the country, NHB placed an effective system of responsive regulation. This has been done to unhindered the free market approach.

For Housing Finance Companies, NHB has come up with a set of guidelines in terms of;

To materialize this sector there is a requirement of synchronization between the Government, Reserve Bank of India (RBI) and National Housing Bank (NHB).

What are the basic requirements for obtaining a Housing Finance Company license in India?

In India, Housing Finance Companies are regulated by the National Housing Bank (NHB). In accordance with the Section 29A of the National Housing Bank Act, 1987, no HFC shall commence or carry on the business of a housing finance without meeting the following conditions -

What are the documents required for Housing Finance Company registration in India?

Below mentioned documents are required to file an application for Housing Finance Company registration:

What is the process of Housing Finance Company registration?

For Housing Finance Company Registration, an applicant company has to submit a physical copy of the application (in duplicate) along with the necessary documents which are mentioned above to the Head Office of the “National Housing Bank” along with the Demand Draft of INR 10,000/- in favor of National Housing Bank payable at New Delhi. Our team of expert professionals can help you and can make the process easy for you.

What are the conditions pertaining to the grant of Housing Finance Company license by NHB?

Once a registration application is submitted, NHB (National Housing Board) will review the application and grant a Certificate of Registration after proper background verification and fulfillment of following conditions as per sub-section (4) of Section 29A of NHB act, 1987:

How Housing Finance Companies are different from Banks?

The activities of banks and HFCs are alike as both are involved in lending and making investments, but there are a few differences as given below:

What are the conditions pertaining to the cancellation of the Housing Finance Company License by the NHB?

NHB may cancel a certificate of registration granted to a housing finance company in some of the circumstances when such HFC failed to comply with the directions of NHB or NHB act.

However, cancellation is subject to certain provisions, if such company

What are the post-incorporation formalities for Housing Finance Company?

Once a certificate of registration is obtained, housing finance companies need to complete the following post incorporation formalities for smooth functioning

What are the mandatory compliances for housing Finance Companies towards NHB?

Here are following compliances need to be adhered by Housing Finance Companies:

Net Owned Fund (NOF) requirement for Housing Finance Company Registration

The aggregate of the paid-up equity share capital and free reserves as disclosed in the latest balance sheet of the housing finance company after deducting the following:

Further reduced by the amounts representing investments of such companies in the shares of the following:

The book value of debentures, bonds, outstanding loans and advances (including hire-purchase and lease finance) made to and deposits with the following:

Market Size

In comparison to banks, housing finance companies have delivered quite better returns. Let’s understand by taking an example:

How Enterslice can help you in Housing Finance Company registration?

Enterslice has filed various applications for Housing finance Company Registration with NHB. Enterslice is leading platform which provides financial advisory services. We offer financial advisory services in more than 22+ Countries.

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