HFC (Housing Finance Company)

Housing Finance Companies are a specialised category of NBFC regulated by the Reserve Bank of India (regulatory authority transferred from the National Housing Bank to RBI in 2019). HFCs focus on home loans, loan against property, home construction loans, and home improvement loans. Major HFCs in India include HDFC Ltd (merged with HDFC Bank in 2023), LIC Housing Finance, PNB Housing Finance, and Aditya Birla Housing Finance. HFCs typically offer longer tenures than banks (up to 30 years), competitive rates linked to repo rate, and specialised products like step-up EMI and pre-EMI plans during construction.