The National Housing Bank (NHB), the apex level financial institution for the housing sector in the country, was established on July 9, 1988 under the National Housing Bank Act, 1987. The NHB works as a facilitator in promoting Housing Finance Institutions and providing financial and other support to such institutions.

As per its mission to promote an effective and cost effective housing finance system in the country, the NHB frames guidelines for housing finance institutions to ensure their growth on sound lines. The NHB provides loans and financial assistance to scheduled banks and housing finance institutions or to any authority established by or under any Central, State or Provincial Act.

Being the chief regulatory body, NHB regulates the activities of housing finance companies based on regulatory and supervisory authority derived under the NHB Act. As per the amendments to certain provisions of the Act, NHB is empowered to grant Certificate of Registration to companies for commencing/carrying on the business of a housing finance institution.

NHB also raises resources for the housing sector towards increasing new housing stock and provides refinance to a large set of retail lending institutions. These include scheduled commercial banks, scheduled state cooperative banks, scheduled urban cooperative banks, specialised housing finance institutions, apex co-operative housing finance societies and agriculture and rural development banks.

Besides the lending operations, NHB's dedicated Training Division conducts regular training programmes in areas relating to housing and housing finance for development of management capabilities of officials working in the sector.