In extension to its concern towards economy amid weak activity, RBI Governor has announced monetary measures such as repo rate cut, further extension of three months to the moratorium period, relief on debt servicing, etc. The Apex bank reduced repo by 40 basis points to 4 per cent and with this India has cut repo rates in line with the developed economies. In March RBI had cut repo rate by 75 basis points and experts feel that these cuts will provide liquidity access in the market.
Real estate sector welcomed cut in key interest rates but said the RBI needs to take more steps, such as one-time debt restructuring of builders loan, to provide relief to the industry which has been hit badly by the lockdown. The RBI needs to ensure that banks pass on the benefits to customers, they said. The industry hailed the extension in the moratorium on loan repayment but felt it was not enough.
Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global and Chairman, ASSOCHAM – National Council on Real estate, Housing & Urban Development said, “Now the situation for homebuyers might improve further as home loan interest rates are expected to come down further. People, who have decided to buy a home during the lockdown period will take a quick decision if banks pass on the benefit. Steps by the RBI are aimed at easing the economy. Affordable housing will benefit the most as the buyers of this segment are very particular about the EMIs. With historically low EMIs, people will go out to buy and thus increase the demand. Now government has to come out with steps to help the developers working in this segment so that projects can be completed without any hindrance.