RBI’s move to bring start-ups under priority sector, will push up funding  to them . This , in turn, will boost up real estate and affordable housing. 

 Giving priority sector status to start ups will make it easier for them to raise funds from banks. RBI’s  initiative  has come at a time when funding to start ups has seen a considerable drop due to Covid. The start-up funding declined by 29% in the first six months of the calendar year 2020. Between January and June 2020, only 443 companies could get funding against 725 companies in the same period.Startups have been finding it difficult to give minimum business guarantee to vendors, suppliers owing to Covid impact.

 Says Pradeep Aggarwal, Founder & Chairman, Signature Global and Chairman, Assocham National Council on Real Estate, Housing & Urban Development, ” RBI’s  policy decision is a positive development. Real estate start-ups in the crucial domains like mortgage and technology have been facing fund crunch. Now priority sector lending to them will help boost real estate in general and affordable housing in particular.