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Home / NBFC & Fintech / Housing Finance Company (HFC) Registration
Last updated: 2 October 2026
A company that wants to carry on housing finance as its principal business needs a Certificate of Registration under Section 29A of the National Housing Bank Act, 1987, granted by the Reserve Bank of India. Expertvuw supports promoters with eligibility review, application documentation, filing on RBI’s PRAVAAH portal and coordination until the certificate is issued.
Since 9 August 2019, when the Finance (No.2) Act, 2019 amended the National Housing Bank Act, 1987, the Reserve Bank of India regulates housing finance companies and grants their registration. The National Housing Bank (NHB) continues as the supervisor of HFCs, receiving their returns and conducting inspections, and separately offers refinance assistance to eligible HFCs under its own schemes.
The current rulebook is the Reserve Bank of India (Housing Finance Companies) Directions, 2025, issued on 28 November 2025 as part of RBI’s consolidation of NBFC directions. It defines an HFC by a principal business test: at least 60% of total assets (netted off by intangible assets) in housing finance, and at least 50% of total assets in housing finance for individuals. A company must also hold a minimum Net Owned Fund of ₹20 crore.
Under the Scale Based Regulation framework, an HFC is placed in the Middle Layer or Upper Layer and never in the Base Layer. That brings a heavier set of governance, capital and liquidity obligations from the first day of operation, which should be reflected in the business plan and board structure before filing.
Expertvuw’s role is advisory, documentation and coordination. Certifications that the law reserves for auditors or other licensed professionals are obtained through independent licensed professionals.
Based on the regulations and circulars referred to on this page. Last updated: 28 September 2026.
Certificate of Registration under Section 29A of the National Housing Bank Act, 1987, granted by the Reserve Bank.
₹20 crore Net Owned Fund to commence or carry on housing finance (HFC Directions, 2025, para 16).
At least 60% of total assets in housing finance; at least 50% in housing finance for individuals (para 10).
Minimum capital ratio of 15% of risk-weighted assets, with Tier 1 capital at least 10% (para 20).
HFCs sit in the Middle or Upper Layer under Scale Based Regulation, never the Base Layer (para 9).
NHB supervises HFCs; supervisory reporting prescribed by RBI goes to NHB (HFC Directions, 2025).
Most delays in HFC applications trace back to a few recurring gaps in structure and documentation.
A plan that cannot reach 60% housing finance assets leads to NBFC-ICC treatment instead of an HFC licence.
Promoter capital without clear, documented sources and banking trail invites repeated RBI queries.
Governance, ALM and IT controls expected of Middle Layer entities are often missing at the application stage.
Related services.
Registration for NBFC-ICC and other NBFC categories under Section 45-IA of the RBI Act.
Board-approved policies mapped to the RBI directions each one comes from.
Layer-wise obligations for Base, Middle and Upper Layer NBFCs.
Business plan and projections prepared for RBI registration filings.
Review capital, shareholding, object clause and planned asset mix against the HFC Directions, 2025.
Align MOA, board composition and capital infusion with the ₹20 crore NOF and Middle Layer norms.
Prepare the housing finance business plan, projections and the board-approved policy set.
Upload the CoR application and supporting documents on RBI's PRAVAAH portal.
Respond to RBI observations and provide clarifications or additional documents as required.
On grant of the CoR, set up reporting with NHB and operational compliance before lending begins.
Once registered, an HFC operates under RBI regulation and NHB supervision from day one.
Maintain the 60% and 50% housing finance ratios, or approach RBI for conversion to NBFC-ICC (para 17).
Keep NOF at or above ₹20 crore and capital ratio at or above 15% of risk-weighted assets.
File periodic supervisory returns with NHB as prescribed and support its inspections.
Follow RBI's Responsible Business Conduct, KYC and ALM Directions, 2025 as applicable to HFCs.
Share your query and our team will reply during business hours.
The Reserve Bank of India. Since 9 August 2019 RBI regulates HFCs and grants the Certificate of Registration under Section 29A of the NHB Act, 1987. NHB continues as the supervisor.
₹20 crore, under paragraph 16 of the Reserve Bank of India (Housing Finance Companies) Directions, 2025.
At least 60% of total assets (netted off by intangible assets) must be in housing finance, and at least 50% of total assets must be housing finance for individuals.
It is treated as an NBFC – Investment and Credit Company (NBFC-ICC) and must approach RBI for conversion of its Certificate of Registration.
No. The HFC Directions, 2025 place HFCs in the Middle Layer or Upper Layer under Scale Based Regulation.
ACS – Director, Expertvuw Management Pvt Ltd
Advisory and company secretarial work is handled by Expertvuw’s team. Audits, certifications and representation that the law reserves for Chartered Accountants, advocates or other licensed professionals are provided by independent professionals engaged for your case.