External Commercial Borrowings (ECB) for the low cost affordable housing projects

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..... route. ECB can be availed of by developers/builders for low cost affordable housing projects. Housing Finance Companies (HFCs)/National Housing Bank (NHB) can also avail of ECB for financing prospective owners of low cost affordable housing units. 3. Detailed guidelines on ECB for low cost affordable housing scheme are set out below:- (I) Definition of eligible project A low cost affordable housing project for the purpose of ECB would be a project in which at least 60 per cent of the permissible FSI would be for units having maximum carpet area up to 60 square meters. Slum rehabilitation projects will also be eligible under the low cost affordable housing scheme. The eligibility of slum rehabilitation project for ECB will be based on t .....

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..... nancing prospective owners of low cost affordable housing units: - i) The HFC should be registered with the National Housing Bank (NHB) and operating in accordance with the regulatory directions and guidelines issued by NHB; ii) The minimum paid-up capital, as per the latest audited balance sheet, shall not be less than INR 50 crore; iii) The minimum Net Owned Funds (NOF) for the past three financial years shall not be less than INR 300 crore; iv) Borrowing through the ECB should be within the HFC's overall borrowing limit of 16 times their Net Owned Funds (NOF); v) The net non-performing assets (NNPA) shall not exceed 2.5 % of the net advances; vi) The maximum loan amount sanctioned to the individual buyer will be capped at INR 25 la .....

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..... ormat. Guidelines with respect to the format of application, project monitoring, etc. are being separately issued by NHB. 4. Developers/builders/HFCs/ NHB will not be permitted to raise Foreign Currency Convertible Bonds (FCCBs) under this scheme. 5. For the financial year 2012-13, an aggregate limit of USD 1(one) billion is fixed for ECB under the low cost affordable housing scheme which includes ECBs to be raised by developers/builders and NHB/specified HFCs. This limit shall be subject to annual review. 6. All other ECB parameters, such as, recognized lender, minimum average maturity period, all-in-cost ceilings, restrictions on issuance of guarantee, choice of security, parking of ECB proceeds, prepayment, refinancing of ECB, reporti .....

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