Categories: Business News

Home buyers can approach banks for loan revival; Rs 25,000-cr fund not for projects in higher courts: Govt

New Delhi, November 08, 2019: A day after announcing a Rs 25,000-crore stress fund for stalled housing projects, the government on Thursday advised homebuyers to approach lenders for additional borrowing or revival of their loans, while clarifying that projects facing litigation in higher courts will not be covered under the scheme.

The finance ministry also said the maximum funding will be Rs 400 crore for any single project that will be seeking assistance from the ‘special window’ or the alternative investment fund (AIF) for completion of the 1,508 projects comprising about 4.58 lakh units.

“Homebuyers are advised to reach out to their respective lending institutions to seek necessary guidance for additional borrowing or revival of their existing home loans within the existing legal and regulatory framework and standard board approved policies of the lending institutions,” said the frequently asked questions (FAQs) issued by the finance ministry in this regard.

The FAQs also said the proposed AIF will not invest in projects that are facing litigation in the high courts or the Supreme Court.

“The focus of this special window will be on the projects that are stalled for lack of construction funding.

“It shall also look at projects that are NPAs (non-performing assets) or undergoing NCLT (National Company Law Tribunal) proceedings, that can commence construction immediately after funds are made available,” it said.

The fund will be set up as a Category-II AIF debt fund registered with the Securities and Exchange Board of India and would be professionally run. SBICAP Ventures Limited will be engaged as the investment manager according to the reports published in thehindu.com.

The FAQs further said funding will be provided to the RERA-registered affordable and middle-income housing projects that are stalled for lack of adequate funds, but their net worth should be positive (including NPAs and projects undergoing NCLT proceedings).

Projects that are “very close to completion” will get priority in funding.

Affordable and mid-income housing projects are those wherein dwelling units do not exceed 200 square metre carpet area and are priced up to Rs 2 crore in Mumbai Metropolitan Region, up to Rs 1.5 crore in National Capital Region, Chennai, Kolkata, Pune, Hyderabad, Bengaluru and Ahmedabad, and up to Rs 1 crore in the rest of the country.

The Union Cabinet had on Wednesday approved the establishment of a ‘special window’ fund to provide priority debt financing for the completion of stalled housing projects.

Finance Minister Nirmala Sitharaman on September 14 had announced that a special window for affordable and middle-income housing will be created. The special window was to provide last-mile funding for housing projects that are stressed.

Subsequently, inter-ministerial consultations and several stakeholder consultations were held with the housing industry including housing finance companies, banks, non-banking financial companies, investors and real estate developers.

Problems being faced by homebuyers, developers, lenders and investors were ascertained that could be addressed through the special window.

The Property Times News Bureau

Share
Published by
The Property Times News Bureau
Tags: 000-crore25afterfinancehomebuyersreportThepropertytimes.inThursday
7 years ago

Recent Posts

GHR Infra Launches ‘2BHK Freedom Offer’ at GHR Callisto

Hyderabad, August 08,2026: GHR Infra has launched the '2BHK Freedom Offer' at GHR Callisto, its IGBC Green Homes…

2 days ago

RBI Holds Repo Rate at 5.25%; Realty Industry Sees Stability as Growth Driver The Reserve Bank of India’s (RBI) decision to maintain the repo rate at 5.25% and retain its ‘neutral’ monetary policy stance in the third bi-monthly Monetary Policy Committee (MPC) meeting of FY27 has elicited a measured response from the real estate industry. While the sector had hoped for a rate cut to further enhance home loan affordability and stimulate housing demand, industry leaders believe the RBI’s decision reflects a balanced approach amid elevated global uncertainties, volatile energy prices, and inflationary concerns. They noted that stable interest rates will continue to support buyer confidence, provide financial predictability for developers, and sustain the momentum witnessed in the residential real estate market. Mr. Kamlesh Thakur, President, NAREDCO Maharashtra “The RBI’s decision to maintain the repo rate at 5.25% while retaining a neutral stance reflects a prudent approach amid global uncertainties and evolving inflation dynamics. While the industry was hopeful of a rate cut, policy stability itself provides confidence to both developers and homebuyers. With borrowing costs remaining unchanged, housing demand is expected to continue its momentum, particularly in the mid-income and premium segments. The upward revision of India’s GDP growth projection to 6.7% underscores the resilience of the domestic economy. Going forward, as inflation moderates in line with the RBI’s expectations, there could be room for a more accommodative monetary policy. A future rate cut would further improve housing affordability, strengthen buyer sentiment, and accelerate investments across the residential and commercial real estate sectors.” Mr. Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory “The RBI’s decision to keep the repo rate unchanged brings continuity and predictability to the market at a time when global geopolitical developments and inflationary pressures continue to create uncertainty. Stable interest rates ensure that home loan EMIs remain broadly unchanged, allowing prospective buyers to make informed purchasing decisions without concerns over rising borrowing costs. The Indian housing market has demonstrated remarkable resilience over the past few years, supported by strong end-user demand, rising incomes, and growing confidence in the economy. With GDP growth projected at 6.7%, we expect housing demand to remain healthy across key micro-markets.” Mr. Shilpin Tater, Managing Director, Superb Realty “The RBI’s decision to maintain the repo rate is a balanced move considering the current global economic environment and domestic inflation outlook. Policy stability is particularly important for the real estate sector as it enables developers to plan projects with greater financial certainty while allowing buyers to benefit from stable lending rates. Demand for quality residential & commercial developments, especially in well-connected urban locations, is expected to remain robust. We remain optimistic that supportive monetary measures in the future could further strengthen investment activity.” Ms. Shraddha Kedia-Agarwal, Director, Transcon Developers “The RBI has adopted a measured and responsible approach by maintaining the repo rate while closely monitoring inflationary trends and global developments. Although a rate cut would have enhanced affordability for homebuyers, the decision to maintain stability provides confidence to both consumers and developers in an uncertain macroeconomic environment. The premium and luxury housing segments continue to witness healthy demand driven by aspirational buyers and strong wealth creation, while the broader residential market remains supported by genuine end-user demand. Stable financing costs, coupled with India’s improving growth outlook, should sustain market momentum.” Mr. Dhruman Shah, Promoter, Ariha Group “The RBI’s decision to keep the repo rate unchanged reflects its focus on balancing growth with inflation management amidst ongoing global uncertainties. For the real estate sector, policy continuity is a positive outcome as it preserves financial stability and ensures that financing conditions remain predictable for both developers and homebuyers. Stable interest rates, combined with sustained infrastructure investments and urbanization, will continue to support residential sales.”

New  Delhi, August 05, 2026: The Reserve Bank of India's (RBI) decision to maintain the…

5 days ago

Alumil India Designs State-Of-The-Art Fenestration  Solutions For Nagpur’s Landmark High-Rise Residential Project

Mumbai, August 04, 2026: Alumil India, the fully-owned Indian subsidiary of Alumil Group, has successfully executed its…

6 days ago

Pichwai Art for Contemporary Walls by WallKalakar’s

New Delhi, July 31, 2026: Led by Wallpaper Designer T.C. Mathur, WallKalakar's latest Pichwai Collection…

1 week ago

Nominations Invited for Adoni Lifetime Achievement Awards 2026

Hyderabad, July 13, 2026: The Khazi India Foundation has formally invited nominations for the prestigious…

4 weeks ago

CREDAI Pune Launches Site Safety Audit Initiative to Strengthen Construction Site Safety

Maharashtra, July 06, 2026: Reinforcing its commitment to worker welfare and responsible construction practices, CREDAI Pune,…

1 month ago