CREDAI welcomes RBI decision to ease funding norms for affordable housing

The Confederation of Real Estate Developers’ Associations of India (CREDAI), the apex body for private real estate developers in the country, has welcomed the RBI decision of easing financing norms for affordable housing.

CREDAI said its long-pending demand for providing infrastructure status to affordable housing has been partially met by the RBI decision.

C Shekar Reddy, president, CREDAI, said, “By easing the financing norms for affordable housing, the RBI has put its best foot forward in order to achieve the Central Government’s goal of ‘Housing for Everyone’. The move of allowing the banks to issue long-term bonds in order to raise resources for lending to affordable housing is appreciable.”

Reddy said the decision will make affordable housing projects attractive for developers and more builders will be coming together to initiate such projects throughout the country.

He further said that “this step will pave the way for liberalised funding, and with the increased exposure, the lending to the affordable housing sector is expected to increase manifold. The builders will be able to pass on the benefits arising from this norm to end-users.”

The national CREDAI chief said the revised norms will make affordable housing eligible for getting loans under priority sector, through which the homebuyers in six metropolitan cities will be eligible for loans up to Rs. 50 lakh for a house costing up to Rs. 65 lakh.