RBI’s New Policy on Housing Loans Brings Cheer to Realty
Sanjay Dutt, MD & CEO, Tata Realty and Infrastructure Limited
As India undergoes a phased unlocking process, the need for the revival of the economy is of absolute importance. We are grateful for all the measures the government has taken and continues to take to address this need. The RBI Monetary policy announced today continues an accommodative stance maintaining the policy repo rate at 4 percent, the reverse repo rate at 3.35 percent and the marginal standing facility or MSF rate remains at 4.25 percent. The RBI also announced on-tap targeted long-term repo operations (TLTRO) of upto Rs.1,00,000 crore to specific sectors and the rationalisation of risk weights to all new housing loans by linking them to LTV ratios only until March 2022 and the extension of the scheme for co-lending to all NBFCs and HFCs was also announced.
We expect this move to definitely help ease credit availability for the real estate sector and address the liquidity issue being faced for a while. With this support received in the revival of residential demand, we remain hopeful that the government will address the requirements such as granting of industry status and single window clearance as well in time. The government has always been supportive towards the needs of each sector and we look forward to their continued assistance to help return the sector to its former glory.