Budget changes, credit lifeline yet to fire up the realty sector

Budget changes, credit lifeline yet to fire up the realty sector
15/10/2019 , by , in News/Views

Major measures announced by the government in recent months to restore credit lifeline to non-banking finance companies (NBFCs) and pull the struggling real estate sector out of its slump have not yet had the desired effect due to delays and regulatory uncertainty, industry and finance experts have said.

A new fund to provide last-mile loans to complete real estate projects has not yet taken off while banks are reluctant to use the partial credit guarantee scheme announced by the finance minister in the July budget to push more loans to the beleaguered NBFC sector.

Realty industry insiders and executives warn that the government should move quickly to set up the Rs 20,000-crore distressed fund that will provide loans to stuck or incomplete projects to avoid large-scale failure.

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