[INDIA REAL ESTATE NEWS] Good morning, everyone.|
I’m Shashi kant shukla staff of Kamagroup Pvt. Ltd. Here I have important
INDIA REAL ESTATE news to share with you which is as mentioned under.
We look at how the NHB’s order, directing housing finance companies to refrain from
giving loans under the subvention scheme, will impact real estate financing, for buyers
and developers alike
The National Housing Bank (NHB) has directed housing finance companies to desist
from extending loans under the subvention scheme. This move by the NHB, is expected
to squeeze the liquidity position of real estate developers further.
What is a subvention scheme?
Subvention schemes are offered by the builders to their home buyers, through tie-ups
with banks. To attract customers, these schemes were promoted heavily, by providing
discounts and freebies. The scheme allowed the buyers to book the property by paying
5% to 20% of the amount, upfront. The buyers did not have to pay EMIs, until
the possession of the apartments. Instead, the developers used to pay the EMIs on
behalf of the borrowers, till a period that was specified in the contract or till the date
Read more at : https://housing.com/news/subvention-schemes-impact-of-the-nhbs-order-on-builders-to-withdraw-such-schemes/
Kamagroup Pvt. Ltd.
Have a nice day.