Nabard plans to enter affordable housing segment

Nabard is planning a foray into rural housing segment by facilitating finance for the homes built under the Prime Minister's Awas Yojana (PMAY).
It is targeting to disburse up to Rs 10,000 crore under this in the current financial year, a senior Nabard official said.
"There are discussions in the government to have a special purpose vehicle to achieve the PMAY targets. We will finance the SPV," the official told reporters.
The official said rural housing is a major challenge and we have to find newer ways of financing it, which makes Nabard get into the segment.
Till now, the development finance institution has been refinancing lenders' loans given to rural affordable housing, but this will be a more direct approach, he said.

Shelter repairs and construction of newer units have been identified as a specific need which can be addressed through this, the official said.

Launched in 2015, the PMAY aims to build 2 crore houses by 2022 which will be the 75th anniversary of the Independence.
Nabard can raise resources from the market using its regular streams, which can be deployed for such activities by keeping a small commission for itself, the official said.
The official said the target is to lend Rs 7,000- 10,000 crore under this route this fiscal itself.
Asked about resource mobilisation, the official pointed to a provision in Budget 2018 that seeks to more than double the capital infusion in Nabard to Rs 3,500 crore.

The government had last year infused Rs 1,400 crore into Nabard.
A sizeable amount of the increased capital infusion will also go towards higher lending to the long term irrigation fund, where Nabard is targeting to disburse Rs 25,000 crore.
The entire amount will be raised through long-term bonds having a tenor of 15 years or more, the official said.