Housing Finance Company (HFC) — NHB Registration, Compliance & Advisory in India

Q: What is the minimum NOF for Housing Finance Company registration?

₹20 crore, increased from ₹10 crore to align with enhanced capital requirements for mortgage lending. Must be maintained as a continuing requirement.

Q: What is the minimum housing loan portfolio requirement for an HFC?

At least 60% of total assets in housing finance, and at least 50% of total net assets in individual housing loans.

Q: What is CERSAI registration and why is it important for HFCs?

CERSAI registers mortgage security interests, protecting HFCs against multiple mortgaging fraud and is a prerequisite for SARFAESI enforcement rights. Registration required within 30 days of mortgage creation.

Q: Can HFCs accept public deposits?

Yes, subject to credit rating requirements and NHB/RBI deposit direction compliance. Deposit-taking HFCs face more stringent regulation.

Q: What NPA classification norms apply to HFCs?

Same 90-day NPA norm as banks and NBFCs. Provisioning: standard 0.25–1%, sub-standard 15%, doubtful 25–100%, loss 100%.

Complete advisory for Housing Finance Company (HFC) registration with the National Housing Bank (NHB), NHB compliance, mortgage lending guidelines, priority sector classification, and annual regulatory filings for housing finance operations in India.

HFC Registration with NHB

End-to-end advisory for Housing Finance Company registration with the National Housing Bank — covering minimum NOF requirement of ₹20 crore, business plan preparation, promoter fit-and-proper assessment, and NHB application filing.

Housing Finance Portfolio Compliance

Ensuring the HFC's loan portfolio satisfies the prescribed composition — at least 60% of total assets in housing finance loans, and at least 50% in individual housing loans — as required by NHB directions for maintaining HFC status.

NHB Annual Compliance

Management of all NHB periodic returns, capital adequacy reporting, NPA monitoring, and compliance with NHB Master Circular requirements — ensuring no regulatory defaults that could trigger NHB supervisory action.

NHB Refinance Advisory

Advisory on accessing NHB refinance facilities — including Rural Housing Fund, Urban Housing Fund, and other NHB refinance schemes — to reduce cost of funds for affordable and priority sector housing lending.

Mortgage & Security Documentation

Review and standardisation of mortgage documentation — loan agreements, equitable mortgage, registered mortgage, SARFAESI enforcement rights, and CERSAI registration for housing loan security interests.

PMAY & Affordable Housing

Advisory on participation in Pradhan Mantri Awas Yojana (PMAY) credit-linked subsidy scheme, affordable housing portfolio classification, and accessing government-backed refinance for economically weaker section and low-income group lending.

HFC Regulatory Framework — NHB vs RBI

Housing Finance Companies were regulated by the National Housing Bank (NHB) until August 2019, when regulatory supervision was transferred to the Reserve Bank of India. NHB continues to regulate HFCs for registration purposes and refinance operations, while the RBI now sets prudential norms, NPA classification, capital adequacy requirements, and corporate governance standards for HFCs — aligning them broadly with the NBFC framework while retaining housing sector-specific requirements.

HFCs with asset size above ₹500 crore are classified as systemically important and attract enhanced compliance requirements including liquidity coverage ratio, internal audit requirements, and board governance norms similar to middle-layer NBFCs under the RBI's scale-based regulatory framework.

Frequently Asked Questions

What is the minimum NOF for Housing Finance Company registration? +

The minimum Net Owned Fund for HFC registration with the NHB is ₹20 crore. This was increased from ₹10 crore to align with the enhanced capital requirements for entities engaged in mortgage lending. The NOF must be maintained as a continuing requirement and monitored as part of capital adequacy reporting.

What is the minimum housing loan portfolio requirement for an HFC? +

An HFC must maintain at least 60% of its total assets as finance for housing (including construction finance, project finance, and individual loans). Additionally, at least 50% of total net assets must be in housing finance for individuals — preventing HFCs from using the housing finance licence primarily for commercial real estate or project lending without adequate individual housing loan exposure.

What is CERSAI registration and why is it important for HFCs? +

CERSAI (Central Registry of Securitisation Asset Reconstruction and Security Interest of India) maintains a central registry of security interests created on immovable properties by way of mortgage. HFCs must register every mortgage created in their favour within 30 days of creation. CERSAI registration protects HFCs against fraud (multiple mortgaging of the same property) and is a prerequisite for SARFAESI enforcement rights on housing loans.

Can HFCs accept public deposits? +

HFCs are permitted to accept public deposits subject to NHB and RBI guidelines, including minimum credit rating requirements, liquid asset maintenance, and compliance with deposit directions. Deposit-taking HFCs face more stringent regulation than non-deposit HFCs. Following the IL&FS crisis, the RBI significantly tightened deposit acceptance norms for HFCs as part of broader NBFC regulation reforms.

What NPA classification norms apply to HFCs? +

HFCs follow the same 90-day NPA classification norm as banks and NBFCs — a housing loan is classified as NPA when principal or interest is overdue for more than 90 days. Provisioning requirements follow the NBFC framework: standard assets 0.25%–1%, sub-standard 15%, doubtful 25%–100% depending on age, and loss assets 100%. Capital adequacy requirements for HFCs mirror those for comparable NBFC categories.

Launch or Grow Your Housing Finance Company with Expert Support

HFC registration, NHB compliance, mortgage documentation, and NHB refinance advisory across India.

F.A.Q.

What is GSTR-9 and why is it required?

GSTR-9 is an annual GST return that summarizes all transactions reported during the financial year. It is required to ensure proper reconciliation and compliance with GST laws.

Who is required to file GSTR-9?

All regular GST-registered taxpayers are required to file GSTR-9, except composition dealers, casual taxable persons, and non-resident taxpayers.

What is the due date for filing GSTR-9?

The due date is generally 31st December following the end of the relevant financial year, unless extended by the government.

What details are included in GSTR-9?

It includes details of outward supplies, inward supplies, input tax credit claimed, taxes paid, and adjustments made during the year.

Is GSTR-9 mandatory for all taxpayers?

GSTR-9 is mandatory for most regular taxpayers, but certain small taxpayers may get exemptions based on turnover thresholds notified by the government.

What happens if GSTR-9 is not filed on time?

Late filing may result in penalties and late fees, along with potential compliance issues or notices from GST authorities.