The Hindu Business Line : ‘Banks reluctant to lend to realty’

Mumbai, Jan. 6 The Confederation of Real Estate Developers’ Association of India has represented to the Reserve Bank of India Governor, Dr D. Subbarao, that despite the recent steep cuts in signal rates, commercial banks were still reluctant to extend home loans as also finance to developers.

Leading a delegation, Mr R.S. Ajmera, President, CREDAI, submitted a memorandum to the Governor asking that real estate to be treated on a par with infrastructure.

Other demands include slotting affordable home price at a maximum of Rs 35 lakh, for which home loan rates should be seven per cent, while charging home loans above Rs 35 lakh at nine per cent.

The members wanted the RBI to relax norms for FDI flow for complete or part purchase of IT parks and malls, besides making five acre or 10,000 sq metre townships also eligible for the investment.

They sought the RBI’s intervention to prompt banks to reduce margins on home loans besides ensuring adequate credit flow to the housing segment.

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