Affordable housing gets a ₹10,000-crore booster

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  1. The National Housing Bank(NHB) has decided to infuse an additional Rs 10,000 crore into housing finance companies(HFCs) to improve liquidity in the sector.
  2. This move would enable the HFCs to provide individual loans for affordable housing.
  3. The government has also approved the budget proposal on one-time partial credit guarantee to public sector banks for purchase of high-rated pooled assets of financially sound NBFCs.
  4. Further,the Finance Minister will also be holding an inter-ministerial meeting on issues related to Micro, Small and Medium Enterprises (MSMEs).The meeting will consider various recommendations given by Expert Committee headed by former SEBI Chief UK Sinha.
  5. The committee has suggested several measures including doubling of collateral-free loans for MSMEs,self help groups and borrowers falling under the Mudra Yojna to Rs 20 lakh.It has also suggested creating a stressed asset fund of Rs 5,000 crore to protect the sector from distress caused by external circumstances.
  6. The National Housing Bank (NHB) was set up in 1988 under the National Housing Bank Act,1987.NHB is an apex financial institution for housing.
  7. Its objective is to operate as a principal agency to promote housing finance institutions both at local and regional levels and to provide financial and other support incidental to such institutions and for matters connected therewith.