Preamble
The Preamble of the National Housing Bank Act, 1987 defines the fundamental purpose of NHB. According to the Act, NHB was established to function as the principal agency for promoting housing finance institutions at both local and regional levels. It is also responsible for providing financial and other forms of support to such institutions and dealing with matters connected with or incidental to housing finance. The Preamble highlights NHB’s role in developing an organized and efficient housing finance system in India.
Vision
“Promoting inclusive expansion with stability in housing finance market.”
The vision of NHB reflects its commitment to ensuring that the housing finance sector grows in a sustainable and stable manner while extending housing finance facilities to all sections of society.
Mission
“To harness and promote the market potentials to serve the housing needs of all segments of the population with the focus on low and moderate income housing.”
The mission of NHB emphasizes the development of an efficient housing finance market that can meet the housing requirements of people across different income groups, especially low-income and middle-income households.
Objectives
NHB was established with the objective of developing a strong and efficient housing finance system in the country. It seeks to promote a sound, healthy, viable, and cost-effective housing finance system that serves all sections of the population and remains integrated with the overall financial system of India. To expand the reach of housing finance, NHB promotes a network of specialized housing finance institutions capable of serving different regions and income groups.
Another important objective of NHB is to mobilize and augment financial resources for the housing sector and ensure their effective channelization for housing activities. It also aims to make housing credit more affordable and accessible to individuals seeking housing loans.
Under the National Housing Bank Act, NHB was originally entrusted with the responsibility of regulating and supervising Housing Finance Companies (HFCs). However, following amendments made through the Finance Act, 2019, the regulatory powers over HFCs were transferred to the Reserve Bank of India (RBI).
NHB also works towards increasing the availability of buildable land and housing construction materials to support housing development. It encourages the improvement and upgradation of the country’s housing stock and promotes the participation of public agencies as facilitators and suppliers of serviced land for housing projects.
In addition, NHB supports the establishment, development, and strengthening of housing finance institutions by providing financial assistance, technical support, and other forms of aid. Through these activities, NHB contributes to the growth of the housing finance sector and helps achieve the objective of providing adequate and affordable housing to all sections of society.