NBFC Housing Loan Software India — NHB Compliance 2026

NBFC Housing Loan Software India — NHB Compliance 2026

Housing Finance Companies (HFCs) are a specialised category of NBFCs regulated by the National Housing Bank (NHB) under the National Housing Bank Act 1987. HFCs provide home loans, home construction loans, and home improvement loans. After 2019, HFCs above Rs. 500 crore asset size also have RBI oversight. The regulatory requirements for HFCs are distinct from other NBFCs — including NHB RESIDEX integration, co-origination norms, and specific guidelines on securitisation.

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HFC-Specific Regulatory Requirements

NHB RESIDEX
The National Housing Bank maintains RESIDEX — an index of residential property prices across Indian cities. HFCs must consult RESIDEX when computing Loan-to-Value for properties in tracked cities. This ensures lending is pegged to realistic market values rather than inflated valuations.

LTV Limits
RBI/NHB specifies LTV limits for home loans:
- Loan up to Rs. 30 lakh: 90% LTV
- Rs. 30 lakh – Rs. 75 lakh: 80% LTV
- Above Rs. 75 lakh: 75% LTV

These limits apply to the lower of purchase price and registered valuation.

SARFAESI Applicability
HFCs above Rs. 100 crore total assets can invoke SARFAESI for mortgage enforcement — a powerful recovery tool but with strict procedural requirements.

Priority Sector Classification
Home loans to EWS and LIG segments under Pradhan Mantri Awas Yojana (PMAY) qualify for Priority Sector Lending classification when co-originated with banks.

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MICS HFC Software Features

Property Valuation Integration
- Registered valuer database: empanelled valuers per city
- Valuation order: issued to valuer from system, valuer submits report digitally
- Valuation report storage: linked to loan file
- RESIDEX cross-check: system compares valuation against RESIDEX index for the area
- LTV computation: automatically computed from valuation vs. loan amount
- LTV breach prevention: sanction blocked if LTV exceeds regulatory limit

Legal and Title Verification
- Title search order: issued to empanelled advocate for property
- Title report storage: advocate submits in digital format
- Encumbrance check: prior charges on the property identified
- MOD (Memorandum of Deposit) of Title Deeds: registered or unregistered based on state requirement
- CERSAI charge registration: mortgage registered on CERSAI portal

Loan Origination
- Property type: flat, independent house, plot + construction, commercial
- Purpose: purchase, construction, extension, repair, plot
- Co-applicant: joint home loan with spouse / parent / sibling
- Income assessment: salaried and self-employed profiles
- Existing housing loan liabilities captured
- PMAY subsidy: CLSS subsidy computation for eligible borrowers

Mortgage and Charge Management
- Property register: all properties mortgaged to HFC
- CERSAI registration: automated filing with CERSAI portal for charge creation
- CERSAI satisfaction: filed on full repayment — charge released
- Insurance: property insurance mandatory — track policy number and renewal
- Life insurance: HLPP (home loan protection plan) tracking for borrower life coverage

EMI and Repayment
- Equated Monthly Instalment on reducing balance
- Pre-EMI interest: during construction period before full disbursement
- Tranche disbursement: for under-construction properties — disburse in stages against construction progress
- Part prepayment: reduces tenure or EMI — as per borrower's choice
- No foreclosure penalty on floating rate loans to individuals (NHB mandate)

SARFAESI Workflow
- Section 13(2) demand notice: auto-drafted from loan data
- Section 13(4) possession notice: after 60-day notice period
- Authorised officer certificate
- Auction management: e-auction integration

NHB Reporting
- NHB annual return
- RESIDEX-aligned LTV reporting
- Priority sector housing loan data
- Securitisation reporting

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Pricing

| Loan Portfolio Size | Monthly Cost |
|---|---|
| Up to 500 home loans | Rs. 25,000 |
| 500-2,000 home loans | Rs. 40,000 |
| 2,000+ home loans | Custom quote |

Free HFC software demo: +91 9355273535 | admin@mics.asia