The Confederation of Real Estate Developers? Associations of India (CREDAI), the apex body for private real estate developers in India, has welcomed the RBI decision of easing financing norms for affordable housing. Providing infrastructure status to the affordable housing segment is a long pending demand from CREDAI. Though the demand is still unmet, the recent step of easing the reserve bank norms for banks has helped in uplifting the real estate sector.
Speaking on the development, C Shekar Reddy, President CREDAI National, said that,?By easing the financing norms for affordable housing, RBI has put its best foot forward in order to achieve the Central Government?s goal of ?Housing for Everyone?. The move of allowing the banks to issue long term bonds in order to raise resources for lending to affordable housing is appreciable. The decision will make the such projects attractive for developers and more builders will be coming together to initiate such projects throughout the country.? He further said that, ?This step will pave the way for liberalised funding, and with the increased exposure the lending to the affordable housing sector is expected to increase many folds. The builders will be able to pass on the benefits arising from this norm to end users.?
This norm also makes the affordable housing eligible for getting loans under priority sector, through which the home buyers in the six metropolitan cities of Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad will be eligible for loans up to Rs 50 lakh for a house costing up to Rs 65 lakh.
For other cities individuals will be eligible for the loans up to Rs. 40 lakh for houses costing up to Rs 50 lakh. This will help the end user in availing the loans easily, and with the new norms in place more people will be able to get the loans for housing.