The RBI has recently allowed banks to restructure loans to real estate companies on the basis of the stuck projects and not the developers. This move will not only aid developers but homebuyers as well, and also give impetus to stuck projects. Before announcing the loan restructuring based on projects, the RBI in fact has taken other measures also in consideration that will help improve liquidity in the market.
Recently, this has been announced that the new housing loans would only be linked to Loan to Value (LTV), which will help the buyers get loans easily and realize their dream of buying a home. The market is reflecting optimum scenario for end-users, and with authorities sorting out the issues faced by the developers, the real estate sector is all set for a good run.
Mr. Pradeep Aggarwal, Founder & Chairman – Signature Global Group & Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development says, “Another relief has been granted by the apex bank for improving the sentiment of real estate sector, a sector which has poignant effect on the nation’s growth rate. Banks will restructure loans based on the projects and not developers now, this is a move that will ensure stability in the sector. It is a breather for stuck projects, unable to kickstart their construction due to scarcity of funds.