Housing finance companies raised their funds by five times

The authorities of housing finance companies have increased their own fund by five times to make sure that the players those are interested in this sector are really serious for business progress. In the last meeting National Housing Bank (NHB) board has decided to increase the least net owned fund requirement for housing finance firms by five times to 10Cr.
According to the head of Retail Finance Edelwiess, Anil Kothari said that “It’s a historical figure” and as per the industries the new regulation wouldn’t affect to the big players”. He added that as big companies already have the huge net worth that the current requirement. As per the requirement of NOF for housing finance companies is just for Rs. 2 Cr. whereas the new regulation will only affect to the small scale companies. After the slowdown in global market in 2009-10 housing finance increased by the 19percent however in 2010-11 it is 16-17 percent.
Apart from this the new tough norms and mounting interest rates already have severely affected to the housing finance demand. On the other hand irregularities and scams have added the fuel to fire.