As per the RBI announcement, loan moratorium on term loan and working capital loan is extended by three months. This move is aimed at easing debt servicing of lenders. This is meant to relieve developers, facilitating faster completion of projects. simultaneously , it will relieve home buyers of their stress in servicing their loan. This, coupled with RBI’s initiative to cut repo rate by 40 bps is a liquidity booster .
Says Mr. Pradeep Aggarwal, Founder and Chairman, Signature Global Pvt. Ltd., Chairman, ASSOCHAM- National Council on Real Estate, Housing and Urban Development, “This liquidity booster augurs well for the real estate sector. However, there is a need for more effective measures to revive Covid- hit realty sector. As a comprehensive measure, the government should allow one time restructuring of loan. Moreover, the government should ease supply side bottlenecks by providing cheaper and easier credit to developers, especially affordable housing developers.