The Housing Finance Company is a type of Non-Banking Financial Company (NBFC) which is engaged in the principal business of “Financing of acquisition or construction of houses”. Generally housing Finance Companies are those type of companies who have the main object of carrying business of providing finance for housing whether directly or indirectly. They are regulated by the National Housing Bank (NHB).
What is Housing Finance Company?
What is the objective of Small Finance Banks?
Its primary purpose is to provide institutional mechanism for promoting rural and semi urban savings to the people of rural areas. Supply of credits to small business units, small and marginal farmers, micro and small industries, and other unorganized sector entity, through high technology- low cost operations.
Regulatory Authority For Housing Finance Company
In the Housing Finance Sector, NBH plays a vital role. To maintain credibility and stability in terms of resource development, policy development and institution building of the housing Finance sector in the country, NHB placed an effective system of responsive regulation.
For Housing Finance Companies, NHB has come up with a set of guidelines in terms of -
1.Financial Assistance
2.Prudential Norms for income recognition
3.Asset classification
4.Regulating deposits taking activity etc.
To materialize this sector there is a requirement of synchronization between the Government, the Reserve Bank of India (RBI) and National Housing Bank (NHB)
1.RBI Regulates - Lending to the housing banks
2.NH regulates- Lending to the Housing by HFCs.
Reviewed by: BIATConsultant CA, CS, legal, tax, finance, and compliance expert team.
Last reviewed: May 28, 2026.
Relevant official references: Ministry of Corporate Affairs, Reserve Bank of India.
Important note: Timelines, government fees, professional fees, document requirements, and approvals depend on the applicable authority, applicant profile, document readiness, and current regulatory process.
FAQ
Common Questions Our Customers Ask Us - Solved!
What are the basic requirements for obtaining a Housing Finance Company License in India?
In India Housing Finance Company is regulated by National Housing Bank (NHB). in accordance with section 29A of the National Housing Bank Act, 1987, no HFC shall commence or carry on the business of a Housing Finance without meeting the following conditions-
1.A Companies must be registered under the companies Act, and who is willing to commence the business of a Housing Finance of a Community at large.
2.It must have the principal object of provif=ding housing loan or housing finance in any form either directly or indirectly.
3.There is a minimum requirement of minimum net owned fund of INR 10 Crore.
What are the documents required to file an application for Housing Finance Company Registration?
What is the process of Housing Finance Company Registration?
HFCs are different from banks- How?
What are the Post incorporation Formality for Housing Finance Company?
Which authority Regulates Housing Finance Company in India?
Can NBFCs accept deposits?
With whom appeal lies in in case of rejection/ cancellation of the certificate of Registration by NHB?
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