INSUBCONTINENT EXCLUSIVE:
Mumbai: The Reserve Bank of India (RBI) on Friday threw a lifeline to non-bank lenders and real estate firms by allowing the former to
restructure commercial realty project loans for a year
These finance companies will now be able to restructure such loans without those being classified as restructured assets, and give fresh
funding to developers.
This leeway was first made available to banks in February
As per the rules, loans would be treated as standard where commencement of commercial operations of projects had been delayed for reasons
outside the control of the promoters
This was beyond the one-year extension permitted in normal course
8-10% of revenue for real estate companies
Karthik Srinivasan, the group head of financial sector ratings at Icra
fund to provide relief to developers to complete unfinished projects
The fund, being anchored by SBICAP, is aimed at providing last-mile funding to developers.