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The Reserve Bank of India’s (RBI) decision for three-months moratorium of EMIs on all outstanding loans is expected to be a major relief to all stakeholders in real estate and construction sector including home loan borrowers and developers.
Reacting to RBI Governor's announcement, Anuj Puri, Chairman of Anarock Property Consultants , said, “This RBI move will encourage banks to lend more and also enable industries to borrow. The moratorium of EMIs on all outstanding loans is a relief to all concerned stakeholders, including home loan borrowers and developers.”
“Developers now have breathing space to get their financial act together, at least for now. Moreover, the fact that non-payment of EMIs will not cause loans to turn bad is a major relief,” he added. He further said, “All in all, this is undoubtedly the most convincing intervention yet to tame a major economic crisis in the country.”
While Ramesh Nair CEO & Country Head of JLL India said In these unprecedented times, the 75 bps rate cut (bringing down current the repo rate to 4.4 per cent) combined with a reduction of 90 basis points (bps) in the reverse repo rate and other measures to infuse liquidity into the system is a welcome move. The repo rate reduction has even breached the 2009 level mark when the economy was hit by the global financial crisis and the policy rate fell to 4.75 per cent. This is to ensure revival of growth, mitigate impact of covid19 while containing inflation.
Shishir Baijal, Chairman & Managing Director, Knight Frank India said, “We are delighted with the Reverse Bank’s announcements which has far exceeded the expectations of the industry. The apex bank has checked all the required boxes of rate cut, liquidity infusion and moratorium. These steps will help the economy to stay stable despite the lockdown and economic disruption.”
He further added, “We are hopeful that these measures will be complemented by further fiscal stimulus measures by the Central and State governments to support demand in the economy. We welcome these measures by RBI and see this as a big relief for the economy in general and for the real estate sector which would have been one of the worst effected owing to its linkages with overall economy”.
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