The 3% lending rate cut effected by SBI CAP Ventures for Stress Fund will ease funding to revive affordable housing projects .
SBI CAP Ventures has cut the IRR for the Rs 25000 crore Stress Fund from 15% to 12% . This is meant to facilitate developers to avail the fund to complete their stalled housing projects. The Stress Fund’s mandate is to help complete over 4.5 lakh stalled housing units across 1500 projects.. These include RERA registered projects with positive net worth. Even those projects are included that have been declared NPAs or admitted for insolvency proceedings. Under this Swamih Investment Fund, 10 projects have received final approval and 50 projects have got preliminary nod.
Says Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global and Chairman, ASSOCHAM – National Council on Real Estate, Housing and Urban Development, ” The rate cut will ease lending to developers to complete their stalled projects. This will particularly help the developers of affordable and mid- segment housing projects as completed projects are easier to sell, the rate cut will provide momentum to housing market.