The government’s twin  liquidity boosting measures for the NBFCs will improve credit flow to developers and property buyers.

 

In its policy measure, the government  has further eased the Partial Credit Guarantee Scheme( PCGS)  to benefit NBFCs. This Scheme 2.0  has been extended by three months to November 19 to improve liquidity for low-rated non-banking financial companies. .Earlier this month, RBI in its August 6 policy, provided Rs 5000 crore liquidity window to NBFCs  These twin  stimulus measures are meant to infuse life into the troubled shadow bank lenders. It enables state- run banks to further raise their investment portfolio by another Rs 11250 crore. The total facility is to the tune of Rs 45000 crore.

 

Says Pradeep Aggarwal, Founder & Chairman, Signature Global and Chairman, Assocham National Council on Real Estate, Housing & Urban Development, ” The consistent liquidity boost to non- banking financial companies by the government will provide fresh stimulus to the credit flow. This will benefit both real estate developers and property buyers, especially home buyers, in turn providing much needed liquidity boost to the sector.