Financial package 2.0 to boost credit flow to realty sector

The liquidity booster by the FM as part of Rs 20000 cr package will boost credit flow to real estate.

The Finance Minister has announced Rs 75000 crore liquidity booster for NBFCs, HFCs and micro finance companies. This liquidity booster has two components. The first component of Rs 30000 cr provides full guarantee while second component of Rs 45000 cr gives partial guarantee. Both these measures are meant to restore financial stability.of NBFCs/HFCs. Further one year extension has been provided for loans by NBFCs to commercial real estate sector. This extension will be applicable from the date from commencement of commercial operations.

Says Pradeep Aggarwal, Founder & Chairman, Signature Global, and Chairman – ASSOCHAM, National Council on Real estate, Housing and Urban Development, ” Now, banks will be able to extend credit to even non-rated NBFCs/HFCs . This should in turn help improve credit flow to developers and home buyers. But then we expect FM to come up with real estate-specific announcements to boost credit flow to this sector. There should be credit guarantee scheme for realty , similar to one extended to MSME sector. Also, there should be one time roll over of developers loans.

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