Regulatory Alerts2023-01-10
Added · Updated
Circular No. 14 of 2022 – Government Mark-up Subsidy Scheme for Housing Finance – Inclusion of Housing Finance Companies (HFCs) as Executing Agencies
Housing Finance Companies (HFCs) are authorized to participate as Executing Agencies in the Government Mark-up Subsidy Scheme for Housing Finance, subject to meeting specific eligibility criteria including a minimum equity requirement of Rs. 50 million, increasing to Rs. 100 million within one year. HFCs must maintain adequate staff, board-approved policies, and management information systems, and are required to appoint independent Chartered Accountants to verify loan authenticity and subsidy claims. The circular mandates that HFCs suspend further financing if non-performing loans reach 15% of the GMSS portfolio and imposes penalties for incorrect claims or failure to reimburse invalid amounts.
Topics
Share