Real estate developers say that real estate developers can not pay EMI

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New Delhi: On the behalf of the borrowers, the National Housing Bank (NHB) has asked the mortgage companies not to Real estate developers offer loan products, which include service receivable by builders, developers, etc., it means that now offer buyers Will is not able to excite. Paying their EMI (Equal Monthly Installment) for Home Loans

Most allow buyers to book apartments with only 5 percent of the payments and balance the delivery through the promise of the EMI. In November 2013, NHB warned against the first subsidy plans, where the builder pays the interest portion.

In a circular issued on July 19, he said, “NHB continues to get many complaints,” besides, some construction companies have also been informed about NHB’s case of fraud using subsidy schemes. “

“We did not give these loans,” said Veni Sah, executive director and CEO of LIC Mutual Fund. “This is intended to discourage developers from building financing by using home loans.”

Another Barry, chairman of Anadarko Property Consultants, said, “This move of NHB has brought a red flag of various subsidy schemes promoted by some developers, which will affect their liquidity and will discourage those buyers who are very attracted to these plans. Has happened.”

According to industry insiders, who were quoted in the newspaper report, developers are using this track primarily on high-value luxury real estate to raise funds before the completion of the project. A banker said that this step was positive for the industry as it would remove some regulatory arbitration between housing finance companies (HFCs) and banks.

The National Bank has asked lenders to follow the guidelines in the circular, even for those loans which have been approved but have not yet been distributed. HFC will also need to develop a system to monitor the progress in the construction of housing projects.

However, lenders can provide loans for under-construction apartments, but the disbursement of housing loans should be linked to the construction steps. Direct exchange can not be done.

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