National Housing Bank (NHB) has announced that the Credit Guarantee Trust Fund a low income housing finance scheme, meant to provide relief to low income groups, will be offered to people by the end of the current fiscal.
On the matter, the Chairman and Managing Director of National Housing Bank, Mr. R. V. Verma said, "We have set up the fund and it should start operating by the end of this fiscal. The risk weight on home loans under the low-income segment backed by the credit guarantee trust will be lower, thereby, giving lenders some capital relief. This will help them pass on the benefit to their customers by way of an interest subsidy."
It should be noted that National Housing Bank is a nodal organization responsible for controlling and disbursing off the Credit Guarantee Trust Fund, which has been floated jointly by the Central and State Governments with a capital of Rs. 1000 crore.