RBI’s relief to housing finance companies will revive plunging consumer sentiment
- RBI’s ₹50,000 crore infusion to cash-starved real estate
- Apart from NABARD and SIDBI, RBI also infused liquidity into the National
HousingBoard (NHB) which will in turn lend to microfinance and other institutions.
- That will also flow to those who need to purchase affordable housing, that is good news for the sector.
“The RBI has further extended the date of commencement of commercial operations (DCCO) of project loans for commercial real estate projects which are delayed for reasons beyond the control of promoters. This is indeed a big move and will bring much-needed relief to cash-starved developers. It will help in easing out time for maintaining and managing cash flows for these developers,” said Anuj Puri, chairman of
Apart from NABARD and SIDBI, RBI also infused liquidity into the National Housing Board (NHB) which will in turn lend to microfinance and other institutions. That will also flow to those who need to purchase affordable housing, that is good news for the sector.
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Puri believes that the liquidity infusion will provide capital to housing finance companies Moreover, according to Puri, the repo rate cut is going to “positive signals in the current times and will enable banks to lend even more.
Knight Frank, which gave recommendations to help revive the real-estate sector, says the announcement has provided a “great sense of reassurance”.
“The measures are taken for liquidity support to NBFCs, HFCs and MFIs will meaningfully help the cause of the real estate sector,” Shishir Baijal, Chairman and MD, Knight Frank said.
“Taking note of the situation, the central bank has provided one-year project completion extension on asset classification for NBFC loans to CRE segment. Considering NBFCs have been very active in this segment, this announcement will ease the pressure of this segment too,” Baijal said.
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