Bank loans is the cheapest form of credit for realty firms, who rely on it primarily for working capital. “There is an overhaul of credit assessment processes and it is only natural that real estate developers, especially in the commercial segment, are witnessing delays in loan disbursement given its high-risk nature. Bank lending is the cheapest form of credit for realty firms, who rely on it primarily for working capital. As on 16 February, loans outstanding to real estate companies stood at Rs1.8 trillion, up 1.1% from a year earlier, according to RBI data. This ensures that houses are affordable and helps us minimise asset quality risks,” said SBI’s chief general manager Vaijinath M.G., who heads the bank’s real estate and housing business unit.

Source: Mint April 09, 2018 22:07 UTC