The government on Sunday announced some sops to home loan borrowers to boost demand in the sector, but realtors are demanding much more.
NEW DELHI: The government on Sunday announced some sops to home loan borrowers to boost demand in the sector, but realtors are demanding much more.
“Public sector banks will shortly announce a package for borrowers of home loans in two categories, up to Rs 5 lakh and Rs 5-20 lakh. This sector will be kept under a close watch and additional measures would be taken as necessary to promote an accelerated growth trajectory,” a government statement said.
“The move is aimed at creating favourable ground for both buyers and sellers who have been shying away from the market in the last few months. We look forward to the banks to take a favourable view of this and announce a favourable scheme for the housing sector soon,” said Rohtas Goel, president at real state trade body Naredco, in a statement.
One of the areas where plan expenditure can be increased relatively easily is the Indira Awas Yojana, a scheme for low-income housing.
“These measures and those announced by Reserve Bank on Saturday will certainly improve the credit flow to realty. We will respond by offering more affordable housing,” Sanjay Chandra, managing director at Delhi-based Unitech, said.
Recently, the Reserve Bank announced that it put in place a refinance facility of Rs 7,000 crore for the National Housing Bank. “This package is certainly good news for the affordable housing segment, but some emphasis should also be given for mid-income level home dwellers. Also the clarity is not there on what type of incentive would be provided, but at least it is a start and we welcome the incentives,” J C Sharma, managing director at Bangalore-based Sobha Developers, said.
Many developers are demanding interest rate to be corrected to around 8% as that will give the radical boost to the housing sector in the country.
vivek_s@dnaindia.net
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