myz-vgb.ru A Business Encyclopedia

Housing Finance Company

Definition: The Housing Finance Company is yet another form of non-banking financial company which is engaged in the principal business of financing of acquisition or construction of houses that includes the development of plots of lands for the construction of new houses.

The Housing Finance Company is regulated by the National Housing Bank. Any non-banking finance company can operate as a housing finance company, subject to the fulfillment of basic requirements as specified in the Companies Act, 1956.

  • The company should have its primary business of providing finance for housing, whether directly or indirectly.
  • The company should obtain a certificate of registration (COR) from the National Housing Bank (NHB). The company conducting such business without a COR is an offense punishable under the provisions of the National Housing Bank Act, 1987, also the NHB can demand the winding up of such company.
  • The company should have minimum Net Owned Fund of Rs 10 Crore.

Once these basic requirements are fulfilled, the company should comply with the following conditions to get registered as a Housing Finance Company:

  • The company shall be in such a position that it is able to meet the full claims of its present as well as future depositors as and when these accrue.
  • The affairs of the housing finance company should not be detrimental to the interest of the present and future depositors.
  • The management of the company should not be prejudicial towards public interest or to the interest of its depositors.
  • The Company should have an adequate capital structure and better income prospects.
  • The certificate of registration shall not be prejudicial to the operation and growth of housing finance sector of the country.

so. all the above conditions must be met by the non-banking finance company to perform the business of financing of houses (construction and acquisition).

Leave a Reply

Your email address will not be published. Required fields are marked *

Shares

Related pages


bureaucracy simple definitionshort term loan advantages and disadvantagesethnocentric culturewhat is operant conditioning theoryexamples of denotation sentencesdelphi techiquetotal assets turnover ratio analysis interpretationkiosk in bankingdefinition of e retailingdefine retrenchingdefinition of contractionary policymonopoly in economics definitionmeaning of cash reservewhat is the definition of moratoriumfactors affecting sales forecastingconsumer cyclical definitionempowering employees definitionmodigliani miller hypothesisnbfc definitionwhat does legitimate power meanmeaning of social loafingindividual trait theorydefinition of laissez-faire leadershipwhat is deontological theoryfmcg sector meaningtransactional psychotherapyhr dashboard meaningisoquant economicscoreationsistematic samplingexplain inelastic demandfrontal attack strategy examplewhat is a straddle positionbuy out definitionthe blake mouton gridexplain the concept of market segmentationdifferent market structures in economicsduring the recession phase of the business cycle5forces modelmotivation herzberghow to prepare a cash budgetdefine referentdavid ricardo iron law of wagesconsumer affluencealderfer theorywhat is the difference between disguised unemployment and seasonal unemploymentjob evaluation factor comparisonfactors that affect consumer buying behaviorsuperego examplearbitrage currency tradingvroom theory of motivationpublic provident fund ppfspearman coefficient correlationexample of likert scalemeaning of variable expensesexploratory market researchdefinition for operant conditioningdefine laissez faire policyvogel method calculatorexplain income elasticity of demandwhat is the meaning of rationingdefine corporate downsizingsecondary research internal and externalpricing markupimportance of cross elasticity of demandclassical management theorythe marginal value of a commodity to a consumerlinear programing problemwhistling blowingmarketing environment notes pdfdefine teleology ethicsgalloping inflation definition