- The Committee will operate as a one-stop-shop, aggregating financing options from multiple large financial institutions.
- It will also work towards creating financial literacy amongst its members and improve their credit ratings.
- Members can submit their application online for further processing with minimum documentation
New Delhi, October 29, 2022: To support and help its members, the National Real Estate Development Council (NAREDCO), an apex body formed under the aegis of the Ministry of Housing and Urban Affairs, Government of India, announced the launch of NAREDCO Finance Committee (NFC), which would enable developers to have easy access to funds based on merit and viability of the projects. The NFC will facilitate its members to access funds professionally while matching its members’ financing requirements with the banks, financial institutions and Non-Banking Financial Companies lending to the real estate sector. The NAREDCO Finance Committee launched on the sidelines of NAREDCO 24th Annual General Meeting held at New Delhi.
Merchant bankers, Resurgent India Limited will be actively associated with the NFC.
The NFC will also support large-scale projects to access funds via financial institutions and educate members about the ways to enhance their credit ratings, NAREDCO said in its statement. “NAREDCO’s noble and unique initiative, the launch of the NFC has a larger developmental goal. While on one hand, we wish to help the industry and developers and infuse liquidity into the system, we plan to help the consumers too with ready-to-move-in projects. Overall, the country will benefit with a healthy supply of units,” said Mr Rajan Bandelkar, National President, NAREDCO.
“With sales momentum remaining consistent over the past several quarters, the real estate sector is going through an interesting phase. While end-users and investors have been investing in the market, liquidity constraints have hindered the development and regular supply of ready units. The establishment of NFC will help us create a pipeline of project deliveries in coming quarters and years, and also help consumers to get home loans when the need arises,” added Mr. Bandelkar
The services of NFC will be easy to access and use. NAREDCO members can apply online and submit their application for facilitation and funding assistance. The Committee and NAREDCO have partnered with financial institutions to limit the processing and in-principle approval time to 15-30 days for an application.
“The industry continues to face a liquidity crunch. We hope to make it a better-designed and organized sector soon. The newly-formed Committee will focus on project financing, which would fulfil the practical requirements of construction by adhering to the construction cycle. By facilitating specialized banking products and funding, the Committee will transform the real estate sector,” said Mr Satish Kumar, Chairman, NAREDCO Finance Committee.
While there would be a provision to waive the processing fee, the Committee will help in several other ways, including a provision for waiving the processing fee, award of concession on the applicable interest rate, and quick project approvals for financing with minimum documentation.
“Through the Committee’s launch, NAREDCO has ensured that members can access funds from financial institutions. As the Committee possesses a definite knowledge of financing policies and schemes of the governments and institutions for the real estate sector in India, builders seeking financial assistance would get facilitated with all the updates on the latest schemes of the Central and State Governments as well as financial institutions. Members receiving a formal approval can visit any branch and apply for a loan for their bankable project,” said Mr Parveen Jain, Chairman, NAREDCO.
Knowledge will spread through the dedicated portal and various NAREDCO offices across the country. The builders would be able to evaluate their needs, and eligibility and understand the criteria thereof.
Member applicants will have other benefits too. “We wish to educate our members on financing and services. Developers, especially those in tier 2 and 3 cities can immensely benefit from the financial literacy the Committee will provide. It will act as a platform to showcase real estate-specific schemes through online sessions and webinars, promotional roadshows, knowledge-based industry seminars and the NAREDCO website,” said Dr Niranjan Hiranandani, Vice Chairman, NAREDCO.
Corporate Comm India (CCI Newswire)