Developers, housing finance companies are allowed to raise $1 bn ECB: RBI
Real estate developers and housing finance companies are allowed by the Reserve Bank of India ( RBI) to raise funds up to $1 billion through external commercial borrowings (ECBs) in order to promote low-cost housing projects.
RBI said that the funds raised through ECBs should be used either for developing low cost housing projects or to provide loans up to Rs 25 lakh to home buyers for buying residential units within the price of Rs 30 lakh.
ECB can be obtained by builders and developers, announced RBI. Also housing finance companies (HFCs), National Housing Bank (NHB) can also raise ECBs in order to finance buyers of low cost and affordable housing units, it adds. Slum rehabilitation projects can also raise ECBs to fund affordable projects.
Raising overseas loan includes lesser cost than domestic borrowings which makes ECBs more attractive. ECBs also render additional accessibility to raise large amounts of funds from global financial markets.
Developers and builders of India with a track record of at least five years in undertaking residential projects are said to be eligible for raising ECBs, states RBI guidelines. And housing finance companies with a minimum paid up capital of Rs 50 crore and minimum net owned fund of Rs 300 crore would be eligible to raise ECBs.
Karnataka government accused by CAG for illegally denotifying land
affordable housing units, builders and developers in india, External Commercial Borrowings, global financial market, home buyers in India, Housing finance companies, low cost housing projects in india, National Housing Bank, RBI guidelines, Real estate developers in India, Reserve Bank of India, Slum rehabilitation projects in india
[...] Developers, housing finance companies are allowed to raise $1 bn ECB: RBI [...]
[...] Developers, housing finance companies are allowed to raise $1 bn ECB: RBI [...]