National, Wednesday, April 28, 2021 (GNI): Owing to the uncertainty created by the second wave of the pandemic, Businesses & Financial institutions have already or may approach RBI for Restructuring of loan accounts to avoid a looming threat of NPAs. Recasting SMA 1 & SMA 2 (nonstandard) accounts and expanding the scope of SMA to accommodate accounts that are default for more than 90 days are some of CREDAI’s long standing demands and in the wake of severe 2nd wave of pandemic, must be allowed on priority. Shortage of funds and reluctance of banks & other financial institutions to lend to real estate sector are hindering the revival of the real estate sector. Government must proactively direct banks to extend extra credit under ECLGS Scheme to RE sector & to implement the infrastructure status already given affordable housing projects. Banks, NBFCs & HFCs must ensure that none of the eligible projects face liquidity crisis and avail funds at much lower interest rates, stated in the press release.
About CREDAI Established in 1999, The Confederation of Real Estate Developers’ Association of India, is the apex body for private real estate developers in India, representing over 13,000 developers through 21 states and 217 city chapters across the country. CREDAI has worked hard to make the industry more organized and progressive by networking closely with government representatives, policymakers, investors. CREDAI works towards the improvement of ethical standards & business practices in real estate. CREDAI is well-recognized by the Central and State Governments in all its endeavours.
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