Home Services M-Registration Housing Finance Company (HFC)

Housing Finance Company (HFC)

Housing Finance Company registration with National Housing Bank (NHB) — for entities providing home loans, housing construction finance, and mortgage-backed lending.

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Overview

A Housing Finance Company (HFC) is a company registered under the Companies Act and authorised by the National Housing Bank (NHB) under Section 29A of the NHB Act, 1987 to carry on the business of housing finance. HFCs provide home loans, loans for construction or renovation of residential property, loans against property, and mortgage-backed securities. NHB is the apex regulator for housing finance in India, operating under the Reserve Bank of India umbrella.

Minimum NOF requirement for HFC registration is Rs.20 crore. HFCs must maintain minimum 50% of their total assets in housing finance activities. NHB registration gives HFCs access to NHB refinance facilities, National Housing Fund, and priority sector classification for bank lending. Regulatory compliance includes quarterly/annual reporting to NHB, Net Owned Fund maintenance, capital adequacy, and prudential exposure norms.

MFiling professional charges: from Rs.49,999 for NHB registration documentation and application.

Key Benefits

Legal Authority to Provide Home Loans
Only NHB-registered HFCs can legally engage in housing finance business in India.
Access to NHB Refinance Facilities
NHB provides low-cost refinance to HFCs for onlending — reduces cost of funds significantly.
Priority Sector Classification
NBFC-MFI loans qualify as priority sector credit — banks actively refinance through NABARD and SIDBI.
National Housing Fund Access
HFCs access NHF for interest subvention schemes targeting affordable housing borrowers.

Documents Required

Certificate of Incorporation and MOA/AOA with Housing Finance Objects
Audited Financials Showing NOF ≥ Rs.20 crore
Business Plan — Loan Products, Target Segment, Geographic Focus
Promoter and Director KYC with Financial Background and CIBIL
Management Team Profiles with Housing Finance / Banking Experience
Technology and Operations Manual

How it Works

Incorporate Company with Housing Finance Objects (Week 1–2)

Register company with primary objects covering housing and property finance.

Build Minimum NOF of Rs.20 crore (Pre-requisite)

Raise equity capital from promoters and institutional investors.

Prepare NHB Application (Month 1–4)

Business plan, management profiles, technology documentation, and all KYC documents.

Submit Application to NHB (Month 4)

File with National Housing Bank's Department of Regulation and Supervision.

NHB Review and Site Visit (6–12 months)

NHB reviews application and may conduct site visit of registered office and operations.

NHB Certificate of Registration Issued (12–18 months total)

NHB grants CoR — HFC can commence housing finance operations.

Frequently Asked Questions

What percentage of assets must an HFC maintain in housing loans?
Under NHB regulations, an HFC must ensure that at least 60% of its net assets are in the form of residential housing loans (individual home loans), with at least 50% in housing loans to individuals of up to Rs.50 lakh per unit. This composition requirement distinguishes HFCs from general NBFCs and ensures they maintain focus on housing finance.
Is an HFC registration different from an NBFC registration?
Yes. Housing Finance Companies are regulated by the National Housing Bank (NHB) under the NHB Act, 1987 — not by RBI under the RBI Act. RBI NBFCs cannot use the HFC designation or access NHB refinance facilities. For new HFC registrations, NHB is the primary registering authority. MFiling advises on whether to register as NBFC-ICC or HFC based on the promoter's business plan and target customer segment.
Service Price
₹49,999
Starting price · GST extra
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Legal Authority to Provide Home Loans
Only NHB-registered HFCs can legally engage in housing finance business in India.
Access to NHB Refinance Facilities
NHB provides low-cost refinance to HFCs for onlending — reduces cost of funds significantly.
Priority Sector Classification
NBFC-MFI loans qualify as priority sector credit — banks actively refinance through NABARD and SIDBI.
National Housing Fund Access
HFCs access NHF for interest subvention schemes targeting affordable housing borrowers.

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Service Price
₹49,999
Starting price · GST extra

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