Solution for stalled housing projects soon-Finance Minister

Announcing steps to boost the economy in a press meet here, the minister said that the measures for the distressed home buyers would be announced next week along with other steps.

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Solution to get the stalled housing projects completed will be provided soon as has been confirmed by the Finance Minister Nirmala Sitharaman. This comes as a hoped to the distressed home buyers across the country.

Announcing steps to boost the economy in a press meet here, the minister said that the measures for the distressed home buyers would be announced next week along with other steps.

The announcement comes days after the minister and Finance Ministry officials met stakeholders of the country’s real estate market, including developers, realty associations and home buyers.

In the meeting on August 11, liquidity problems and completion of stalled projects were discussed whereby the developers suggested the creation a stress fund for completion of stalled projects. 

The home buyers’ association, Forum For People’s Collective Efforts (FPCE), in its letter to Sitharaman had said that the stalled projects can be solved with a stress fund of at least Rs 10,000 crore.

Also, the government on Friday announced a slew of measures to ensure that loans for home, vehicles and consumption goods become cheaper and widely available through banking and non-banking finance companies. Addressing the media here, Finance Minister Nirmala Sitharaman also said that banks will pass on RBI rate cut benefits to borrowers through MCLR reduction. 

She said that banks will launch repo rate and external benchmark-linked loan products that will lead to reduced easy monthly installments for housing, vehicle and other retail loans. 

The minister also announced additional liquidity support of Rs 20,000 crore to housing finance companies (HFCs) by the National Housing Bank (NHB), thereby increasing the total support to Rs 30,000 crore. 

The government announced partial credit scheme for purchase of pooled assets of non-banking finance companies and HFCs up to Rs 1 lakh crore to be monitored at highest level in each bank. 

Prepayment notices issued to NBFCs will be monitored by banks. 

The minister said that NBFCs will be permitted to use the Aadhaar authenticated bank ‘Know Your Customer’ (KYC) to avoid repeated processes. 

The government has decided to make necessary changes in PMLA rules and Aadhaar regulations to ease the lending process. 

Source: ET Realty

Image source: The Hindu Business Line