The apex association of real estate developers Thursday sent an SOS to the Prime Minister’s Office (PMO) saying housing and other projects were facing an acute liquidity crisis after financial institutions stopped disbursing sanctioned loan amounts to builders. CREDAI has demanded a one-time restructuring of bank loans and creation of a ‘stressed asset fund’ for completion of real estate projects. At a time when developers are under immense pressure to deliver projects on time, financial institutions are cancelling disbursements after the loans have been sanctioned – leading to the non-adherence of timelines specified to home buyers, CREDAI said in a statement. RBI should include a sub-limit of 10 per cent for Affordable Housing in overall target of lending 40 per cent to priority sector. The lack of adequate avenues of funding to developers will not only affect the developers and homebuyers but also the 250+ allied industries which are directly or indirectly dependent on this sector. This will help increase flow of credit to cheaper rate to Affordable Housing, CREDAI said.
CREDAI writes to PMO about liquidity crunch in realty sector; seeks bail-out package
