Economy

Mangalore real estate developers seek funds

Our Bureau Mangalore | Updated on November 15, 2017 Published on January 15, 2012

The real estate developers' body in Mangalore has urged bankers not to compare them with developers in mega cities while extending funds to them.

Speaking at the inauguration of a home loan fest, organised by the State Bank of India (SBI) here on Saturday, Mr P.M.A. Razak, Chairman of Mangalore chapter of CREDAI (Confederation of Real Estate Developers' Association of India), said loan sanctions are not materialising because bankers compare them with their counterparts in metros.

Stating that NPAs or sub-standard assets are unlikely in Tier-2 and Tier-3 centres in the country, he said a major portion of the present NPAs in real estate sector is by a handful of big developers in the metros .

He said a major portion of the local economy in Mangalore is driven by the real estate sector, as the city lacks mega industries and investments in IT (information technology) sector. More than 65 per cent of jobs for un-skilled workers in the region are generated by the real estate sector, he said.

In such a situation, banks should help the real estate sector by extending adequate funds to them, Mr Razak said.

Inaugurating the fest, the Karnataka Minister for Ports, Mr Krishna Palemar, said home loan and car loan ‘utsavs' like this would help customers own their dream house/car. Added to this, such loans will also help boost the growth of the city.

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Published on January 15, 2012
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