External Commercial Borrowings
According to the Reserve Bank (RBI) data released on Tuesday, borrowings by Indian firms declined by over 3 % from a year ago to $ 1.89 billion in June 2014. During June 2013, India Inc. had raised $ 1.95 billion from overseas markets by way of external commercial borrowings (ECBs). Of the total companies raising [...] Continue Reading »
The chronic housing shortage in India requires reforms in the banking sector and investment policies. Then only Modi’s dream of Housing for all’ by 2022 will come true. Sunil Mantri the President of National Real Estate Development Council (NAREDCO) stated that currently the bank’s exposure to the realty sector is only 5 %. This is [...] Continue Reading »
The PNB Housing Finance LTD, after being promoted by the Punjab National Bank and backed by the private equity fund New Silk Route has recently emerged with a new plan that will raise loans by a large chunk of money. The transactions will take place from the International Finance Commission (IFC). The focus of PNB [...] Continue Reading »
Housing Development Finance Corporation (HDFC) raised $300 million via external commercial borrowings (ECB). The amount was raised under the affordable housing scheme of the Reserve Bank of India. ECB loans carry a lower rate of interest and are raised abroad. The RBI has allowed housing finance companies to tap external sources of financing to enable [...] Continue Reading »
Indian companies can access funds from abroad through External Commercial Borrowings (ECB) of different kinds. In general, ECB pertains to commercial loans in the form of bank loans, buyers’ credit, suppliers’ credit, securitized instruments (like floating rate notes and fixed rate bonds, non-convertible, optionally convertible or partially convertible preference shares) obtained from non-resident lenders with [...] Continue Reading »
Delhi- In order to promote low-cost housing projects, the government is planning to allow foreign direct investment (FDI) in such projects, subject to a host of conditions, including a lock-in period and minimum capital requirements. At present, FDI is banned in the real estate business but 100 percent FDIis allowed in the construction development projects [...] Continue Reading »
Delhi- Focusing towards the requirement of the middle class buyers, the upcoming budget is likely to give a boost to the affordable housing sector. The government’s main intention will be to push the number of homes with price tags around Rs 20 lakh. It can be achieved through offering incentives like tax breaks, easy loans, [...] Continue Reading »
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 [...] Continue Reading »
The realty market in India is in a bad shape. The expectation of the sector on the budget was not fulfill to that extent. The good news for the realty sector is the allowance of External Commercial Borrowings for low cost affordable housing projects. The withholding tax also reduces to 5% from 20% on ECBs [...] Continue Reading »
