Home Loans

Commercial bank would act as an agent in collecting deposits. The NHB may also consider selected urban-co-op banks for collecting deposits as agents in this context.

The depositors are entitled to get twice the target amount at the end of 5 years maturity. The NHB may consider making the maturity period more flexible to meet the depositors needs. Depositors may be allowed to open a home loan account in the name of their children, with higher maturity and lower deposit installment. It will attract more depositors.

It is reported that the NHB is going to approach the Central Board of Direct Taxes for amending the IT Act, with the view to exempt the deposited amount from income tax under Section 80. Interest earned on this deposit also should be exempted under the IT Act.

 

The scheme has to be linked with insurance policy. It should be made compulsory to the depositor to take a LIC policy of the amount with the view to use the same as a collateral security, while obtaining housing loan at the end of maturity period. NHB may also explore possibilities of introducing group insurance scheme on such depositors. It will be another appealing feature to attract new depositors.

These modifications would help the NHB to attract more than Rs 1,000 crores instead of the targeted Rs 100 crore every year.