Glad to see that the Government and RBI working together
“The Covid-19 outbreak has disrupted all businesses and the real estate sector, which forms the backbone of several other industries, has been worst hit as all construction has come to a grinding halt. Amidst all this, we are thankful to the government for providing financial support during the crisis. In particular, the RBI’s decision to slash reverse repo rate by 25 basis point and additional liquidity measures for the National Housing Bank (NHB) will provide some relief to the sector, which had already been dealing with its own set of issues prior to the pandemic. These measures announced by the RBI are bound to encourage banks to lend more, thereby improving the credit flow and giving more purchasing power to homebuyers and investors.
RBI’s move allowing NBFCs to extend realty loan by 1 year, if projects are delayed due to unavoidable circumstances, will also provide the much-needed support to the sector. Additionally, the allowance of similar benefits for loans given by NBFCs to real estate companies as given by scheduled commercial bank is a great step that will boost the sector growth. At times like this, agility is key in improving the economic situation of any nation. We are glad that the RBI has demonstrated agility by announcing a slew of measures to support the real estate sector, corporates and the economy at large. However, the two major agendas that the Government must focus on to truly help the sector are the arresting of the Covid-19 outbreak and reviving the economy to its optimal level.”