Categories: Economy

Finance Ministry allows HFCs above Rs 100 cr to use to SARFAESI law

Ministry of Finance has allowed housing finance companies (HFCs) with asset size of over Rs. 100 crore to recover the dues using SARFAESI law. This move is expected to be a shot in the arm for thousands of small HFCs, as it will facilitate quick recovery of dues and encourage these companies to lend more.

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Earlier HFCs with assets over Rs. 500 crore (and notified by Finance Ministry) were allowed to use SARFAESI law to recover dues. Currently, there are nearly 100 HFCs that are registered with NHB. The top-10 HFCs account for 70-80 per cent of the assets of the housing finance industry. SARFAESI Act 2002 allows banks and other financial institutions to auction residential or commercial properties (of Defaulter) to recover loans.

Important takeaways for all competitive exams:

  • Union Minister of Finance and Corporate Affairs: Nirmala Sitharaman.

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Sumit Arora

As a team lead and current affairs writer at Adda247, my role involves researching and creating informative and engaging content aimed at helping candidates prepare for national and state-level competitive government exams. I specialize in delivering insightful articles that keep aspirants updated on the latest current affairs trends and developments. My primary focus is on educational excellence, ensuring that our readers are well-prepared and informed to face their exams with confidence. Through meticulously crafted content, I aim to guide and support candidates in their journey toward success.

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