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RBI to tighten rules for home finance firms
News:
- RBI has proposed stringent norms for housing finance companies by mandating 75% of their home loans to individual borrowers by 2024.
More in news:
- In the draft norms issued, the RBI proposed the definition of qualifying assets for housing finance companies (HFCs).
- It said at least 50% of net assets should be in the nature of ‘qualifying assets’ for HFCs, of which at least 75% should be towards individual housing loans.
About Housing Finance Companies:
- A housing finance company is considered a non-banking financial company (NBFC) under the RBI’s regulations.
- A company is treated as an NBFC if its financial assets are more than 50% of its total assets and income from financial assets is more than 50% of the gross income.