Business Today
Loading...

RBI allows extension of NBFC loans to delayed commercial real estate projects by 1 year

The data for commencement of commercial operations (DCCO) for loans given to commercial real estate can be extended by additional one year

Ashish Pandey        Last Updated: April 17, 2020  | 14:32 IST
RBI allows extension of NBFC loans to delayed commercial real estate projects by 1 year
The RBI has provided a welcome relief to NBFCs and HFCs in the form of liquidity boosters, which will benefit both housing and commercial real estate

The Reserve Bank of India (RBI) on Friday said that the loans by non-bank financial companies (NBFCs) to delayed commercial real estate projects can be extended by a year without restructuring. The data for commencement of commercial operations (DCCO) for loans given to commercial real estate can be extended by additional one year, it added. The move is expected to give relief to NBFCs as well as the real estate sector. "It has now been decided to extend a similar treatment to loans given by NBFCs to commercial real estate. This will provide relief to NBFCs as well as the real estate sector," RBI Governor Shaktikanta Das said in a statement. The central bank had already given such a relaxation to the banks.

The move is expected to provide a much-needed relief to the real estate companies and also help them to efficiently manage cash, Anuj Puri, Chairman, ANAROCK Property Consultants, said. "In another major relief to developers, the RBI has further extended the date of commencement of commercial operations (DCCO) of project loans for commercial real estate projects which are delayed for reasons beyond the control of promoters. This is indeed a big move and will bring much-needed relief to cash-starved developers".

"It will help in easing out time for maintaining and managing cash flows for these developers," Puri added.

"The RBI has provided a welcome relief to NBFCs and HFCs in the form of liquidity boosters, which will benefit both housing and commercial real estate. The liquidity provisions made by RBI through Rs 50,000 TLTRO deployment will enable HFCs and NBFCs to raise financing through bonds, commercial papers etc.  Special Refinancing facility of Rs 10000 crore announced for National Housing Bank will ease some of the liquidity challenges for housing financing companies to get bank financing in the wake of COVID 19 crisis. RBI has also allowed NBFC loans to delayed commercial real estate projects to be extended by a year without restructuring which is a welcome move," Ravindra Sudhalkar, CEO, Reliance Home, said.

Also read: RBI changes NPA classification period to 180 days from 90 days

Also read:RBI booster 2.0: Housing finance to get Rs 50,000 crore refinancing facility

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close