Relax funding norms, ask developers
In the ongoing series of discussions to provide relief to real estate sector, developers have asked for relaxation of funding norms.
Deliberation between Indian Bankers Association (IBA) and Confederation of Real Estate Developers Association of India (CREDAI) saw developers called for the easing of financing norms to ease the cash crunch of the developers. The developers body argued that enabling external commercial borrowings for real estate would be helpful for the sector.
CREDAI has proposed to raise the credit limit available for projects. They say that the credit limit for realty projects should be raised to 25% of the total credit from the current 2.8%. Along with it, they want the RBI risk weightage of 1.25 given to the real estate sector to be eased.
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