Housing finance companies may get one year extension for restructuring loans
Financially sound non-banking finance companies (NBFCs) and housing finance companies (HFCs) may be next in line to be permitted extension of the date of commencement of commercial operations (DCCO) of project loans for commercial real estate by another one year without downgrading the asset classification.
Official sources said that the Reserve Bank of India (RBI) extended this facility to banks after the recently concluded meeting of the Monetary Policy Committee on February 6 and NBFCs and HFCs may now be included in the scheme to allow completion of a larger number of viable real estate projects that are delayed for reasons beyond the control of promoters.
The move will not only bring NBFCs and HFCs at par with banks in treatment of loans given for restructuring of real estate projects without downgrading the asset classification, but also provide a big relief to both commercial real estate and residential projects that were delayed on account of regulatory issues.
It may be offered to companies such as LIC Housing Finance, PNB Housing and Shriram Finance which have largely remained unaffected from the present liquidity crisis in the sector following problems in IL&FS and DHFL.