Real Estate Bodies ask Finance Minister to Defer Loan EMI
Apr 01, 2020 Real Estate News
The current times are difficult for not the lives of people but also the economy of the country. Keeping this in mind the real estate bodies have written to the Finance Minister of the country to the housing loan instalments for 12 months, a moratorium on loan projects for 2 years, and release of building plans and other approvals that are held up due to the payment of fees among the other measures the government is taking in such difficult times.
The president of NARDECO- UP, Supertech Chairman RK Arora said that due to Covid-19 impact, housing sales are almost nil. There are no buyers in the market, naturally, the value of housing prices is zero. We have asked for certain relief package from Finance minister.
To overcome the impact of the pandemic, NARDECO further said that few steps are necessary keeping the buyers and developers in mind. All the loans disbursed by the banks for projects must be allowed unconditional moratorium for 2 years and during this period no project account shall be treated as NPA and no recovery proceedings should proceed against the developer.
The body further requested the Finance Minister, Nirmala Sitharaman, that to ease the liquidity for the homebuyers who have taken the home loan and due to the pandemic situation, the home buyers need liquidity support. The body asked that the home buyers who have taken the home loan shall be given 12 months deferment for EMI payment towards their loan instalment. Additional interest and penal interest should also be allowed.
CREDAI of Haryana has asked the state government for the relaxation in rules and regulations for the developers.
According to Kushagr Ansal, President of CREDAI Haryana, the real estate sector contributes to 10 percent of the National GDP and is the second-largest employer in the Country and due to this pandemic; the real estate industry would be drastically impacted. We believe that relaxations would be in the larger interest of not only of the sector but all stakeholders including the customers and in the absence of relaxations in rules and regulations; the real estate industry would hit all-time low and suffer irreparable damage.
CREDAI also mentioned that due to the closing of borders of cities there is an imbalance in the supply chain and the sector is suffering from an acute shortage of raw materials. The construction sites have been shut down due to COVID- 19 as well.
In the letter written to the Finance Minister, the real estate body also mentioned that untimely payment from the customers is another critical issue in the present market conditions and after this pandemic, the customers might not be in a position to make the payments and this would be a major setback for the sector. On the other hands, Developers are under extreme pressure from the authorities, financial institutions for meeting their deadlines and for payment of loan installments on time.
The body as asked the government to exempt the payment of interest on external and internal development charges for one year starting February 15. Furthermore, it also mentioned that the process of necessary approvals for the development of the project shall be taken on an urgent basis without the prerequisite of ban guarantee and other charges.
The president of NARDECO- UP, Supertech Chairman RK Arora said that due to Covid-19 impact, housing sales are almost nil. There are no buyers in the market, naturally, the value of housing prices is zero. We have asked for certain relief package from Finance minister.
To overcome the impact of the pandemic, NARDECO further said that few steps are necessary keeping the buyers and developers in mind. All the loans disbursed by the banks for projects must be allowed unconditional moratorium for 2 years and during this period no project account shall be treated as NPA and no recovery proceedings should proceed against the developer.
The body further requested the Finance Minister, Nirmala Sitharaman, that to ease the liquidity for the homebuyers who have taken the home loan and due to the pandemic situation, the home buyers need liquidity support. The body asked that the home buyers who have taken the home loan shall be given 12 months deferment for EMI payment towards their loan instalment. Additional interest and penal interest should also be allowed.
CREDAI of Haryana has asked the state government for the relaxation in rules and regulations for the developers.
According to Kushagr Ansal, President of CREDAI Haryana, the real estate sector contributes to 10 percent of the National GDP and is the second-largest employer in the Country and due to this pandemic; the real estate industry would be drastically impacted. We believe that relaxations would be in the larger interest of not only of the sector but all stakeholders including the customers and in the absence of relaxations in rules and regulations; the real estate industry would hit all-time low and suffer irreparable damage.
CREDAI also mentioned that due to the closing of borders of cities there is an imbalance in the supply chain and the sector is suffering from an acute shortage of raw materials. The construction sites have been shut down due to COVID- 19 as well.
In the letter written to the Finance Minister, the real estate body also mentioned that untimely payment from the customers is another critical issue in the present market conditions and after this pandemic, the customers might not be in a position to make the payments and this would be a major setback for the sector. On the other hands, Developers are under extreme pressure from the authorities, financial institutions for meeting their deadlines and for payment of loan installments on time.
The body as asked the government to exempt the payment of interest on external and internal development charges for one year starting February 15. Furthermore, it also mentioned that the process of necessary approvals for the development of the project shall be taken on an urgent basis without the prerequisite of ban guarantee and other charges.
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