Real estate sector seeks Rs 1.25 lakh cr stress fund
The National Real Estate Development Council (NAREDCO), an industry body, is seeking an estimated Rs 125,000 crore via many Housing Finance Corporations (HFCs) and Non-Banking Financial Companies (NBFCs) who they say are ready to establish such stress funds for the ailing real estate sector. According to the body, this will allow for faster sanctions and appraisals.
Niranjan Hiranandani, National President, NAREDCO, said that the industry appreciates the establishment of the Rs 25,000 crore Single-Window for Affordable and Mid-Income Housing (SWAMIH) fund to help the real estate, but allowing more similar stress funds will facilitate last-mile funding for stressed and stalled projects.
Enhancing loan to value (LTV) ratio up to 90% across the board for home loans for affordable houses of Rs 30 lakh or less and the same facility should be extended to MIG and HIG, is another demand that industry has put forward.
Allowing interest on home loans for income tax deductions without any ceiling, current interest deduction under section 24 of IT Act 1961 on housing loans of Rs 2 lakh should be removed in order to incentivise home buyers, said NAREDCO.
A-303, Navbharat
Estates,
Zakaria Bunder Road,
Sewri (West), Mumbai - 400 015,
Maharashtra, India
+91-22-24193000
Subscriber@ASAPPinfoGlobal.com