Housing Finance Companies (HFCs) are specialized non-banking lenders focused on long-tenure home loans and housing-linked finance. With India’s housing credit market expanding rapidly across affordable, mid-market, and premium segments, HFCs play a critical role in fulfilling the national goal of “Housing for All” and serving borrower segments that banks often cannot reach.
Since August 2019, HFCs are treated as a category of NBFC and are directly regulated by the Reserve Bank of India, while the National Housing Bank (NHB) continues to play a supervisory role. HFC registration requires a minimum Net Owned Funds (NOF) of ₹20 crore, with at least 60% of total assets invested in housing finance and at least 50% in housing loans to individuals — making it one of the most strategically important NBFC categories in India.
We provide end-to-end advisory for Housing Finance Company registration — from structure selection and capital planning to RBI application, policies, tech and NHB / CERSAI integration, and ongoing regulatory, statutory, and SBR compliance — so your HFC is set up cleanly and runs compliantly from day one.
Minimum NOF of ₹20 crore required for registration as a Housing Finance Company, certified by statutory auditor and bankers.
At least 60% of total assets must be deployed in housing finance as per RBI definitions.
At least 50% of total assets must be in housing loans to individuals for residential purposes.
Minimum Capital Adequacy Ratio of 15% to be maintained on an ongoing basis under RBI norms.
Capital adequacy includes Tier I and Tier II capital as per RBI HFC Master Directions.
Directors and promoters must satisfy the Fit and Proper Criteria prescribed by the RBI.
Advisory on entity structure, segment focus (affordable / mid / premium), and target geographies.
Incorporation of a company with HFC-compliant objects and appropriate capital base.
Structuring the ₹20 crore NOF, capital raise plan, and promoter contribution architecture.
Detailed 5-year business plan covering product mix, borrower profile, and financial model.
Credit, risk, pricing, recovery, FPC, KYC/AML, IT/IS, and outsourcing policies.
Preparation and filing of HFC application with RBI along with all supporting documentation.
Promoter & director due diligence, Fit & Proper documentation, and declarations.
Ongoing compliance, NHB / CERSAI / CKYCR integrations, SARFAESI setup, and advisory.
Loans for purchase, construction, or acquisition of residential property for individuals.
Loans for renovation, repairs, and extension of existing residential property.
Small-ticket home loans aligned with government affordable housing schemes and EWS / LIG borrowers.
Secured loans against residential / commercial property for business or personal needs.
Project finance to developers for construction of residential real estate projects.
Refinancing of existing home loans with enhanced sanction or interest rate improvement.
Home loans to NRIs and OCIs for purchase of residential property in India, within FEMA norms.
Combined loan for purchase of plot and subsequent construction of a residential dwelling.
Must be a company incorporated under the Companies Act, 2013 with HFC objects in the MOA.
Minimum NOF of ₹20 crore, verified through auditor and banker certification.
At least 60% of total assets in housing finance, of which 50% must be to individuals.
Ability to maintain minimum CRAR of 15% with appropriate Tier I / Tier II capital mix.
Promoters and directors must satisfy RBI’s Fit and Proper Criteria and have relevant experience.
Board structure, committees, and governance aligned to the SBR framework for HFCs.
Finalize entity structure, capital plan, and target product & borrower segments.
Incorporate the company with HFC objects and appropriate authorized capital.
Infuse ₹20 crore NOF, obtain certifications, and prepare policies and business plan.
File HFC registration application with RBI along with all supporting documentation.
Respond to RBI queries, receive Certificate of Registration, and commence operations.
Continuous compliance with housing finance and individual housing asset ratios.
Maintain minimum 15% CRAR and leverage limits as per HFC Master Directions.
Periodic returns to RBI including ALM, NPA, asset quality, and governance disclosures.
Supervisory reporting to NHB where applicable, and alignment with NHB guidelines.
Implementation of FPC, Key Fact Statement, and transparent pricing disclosures.
Customer due diligence, PMLA reporting, and STR / CTR filings to FIU-IND.
Registration of security interest on CERSAI and upload of KYC records on CKYCR.
MCA filings (AOC-4, MGT-7, DIR-3 KYC), statutory audit, income tax, GST, transfer pricing.
Partner with our specialists for end-to-end HFC advisory — from structuring and RBI registration to policies, SARFAESI, and ongoing compliance — under one roof.
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