housing finance company registration

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housing finance company registration

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 types 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). As per section 29A of the National Housing Bank Act, 1987 it is compulsory for every proposed housing finance company to procure a certificate of registration from NHB before initiating activities related to housing finance. For Housing Finance Company registration, Preach Law can assist its client to procure Housing Finance Certificate.

Reader kindly note that


  • HFCs cannot conduct business of housing finance without obtaining a Certificate of Registration (CoR) from NHB.
  1. Conduct of business without obtaining certificate of registration is an offence punishable under the provisions of the National Housing Bank Act, 1987.
  2. NHB can also file application for winding up of such HFCs, under section 33B of the said Act.

Regulatory Body for Housing Finance Company:

NHB plays the most substantial role. In terms of integration with the debt and capital markets, the housing finance sector in India has entered into the second phase of development in Indian economy. To maintain the reliability and constancy 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. Guidelines issued by NHB for Housing Finance Company: Financial assistance Prudential norms for income recognition Asset classification Regulating deposits taking activity etc. To materialize objective of Housing Finance Sector, there is a requirement of synchronization between the Government, Reserve Bank of India (RBI) and National Housing Bank (NHB). There is two regulatory bodies who are regulating following:

  1. RBI regulates – lending to the housing by Banks
  2. NHB regulates – lending to the housing by HFCs Basic requirements for obtaining a Housing Finance Company license in India.

In accordance with the 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 company must be registered under the Companies Act, 2013/1956 and who is willing to commence the business of a Housing Finance for the community at large;

2) It must have the principal object of providing housing loan or housing finance in any form either directly or indirectly;

3) There is a requirement of minimum net owned fund of INR 10 crore;

Documents required for Housing Finance Company registration:

  • Certified Copy of MOA (Memorandum of Association) & AOA (Article of Association);
  • Demand Draft of Rs.10,000/- in favor of NHB, New Delhi;
  • Board Resolution specifying the objective of the Company and authorization to file Application before NHB;
  • Certificate by professional regarding the meeting the criteria of minimum NOF (Net Owned Fund) of Rs.10 crores;
  • Business Plan of the company for the next 3 years;
  • Company profile; Business profile of MD/Directors/CEO.
  • Audited Financials for the last three years, if available;
  • Education and experience certificate of directors and employees;
  • Certificate by professional regarding the source of the capital of the company;
  • Details of the company in which promoters/ directors, associated;



      • Preparation and Filing application of Housing Finance Company License with NHB
      • Collection & Preparation of documents need to be submitted with NHB
      • Design and Draft Business Plan for 5 years.
      • Product, Budgeting and Loan Disbursal Plan.
      • End to End Liaisoning with the NHB and Government Authority