Low Cost Housing : Real Estate Firms Allowed to Raise $ 100 Crore From Abroad


The Reserve Bank of India (RBI) has allowed Indian real estate developers / promoters / builders and housing finance companies (HFCs) to raise funds overseas for low cost housing projects..!.

 RBI said in a notification on  recently, ''Developers &housing finance companies will be permitted to borrow $ 100 crore (1 billion) in 2012-13 under the low cost affordable housing scheme.

* The Indian Housing sector regulator RBI said, It will review the borrowing limit every year.

* Developers / promoters with minimum five (5) years of experience in residential projects & those who have not defaulted in any of their financial commitments to banks or / any other agencies will be eligible to raise funds overseas.

* The project for which the builder / promoter is raising funds should not be involved in any litigation.

* RBI has also made it mandatory that the project should be in conformity with the provisions of master plan /  or development plan of the area.

* The layout should conform to the plot of land use stipulated by the town & country planning department for housing projects

* All necessary clearances from various bodies including revenue department with respect to land usage / or environment clearance, etc are available on record.

* HFCs that are registered with the National Housing Bank (NHB) and have a minimum capital of Rs. 50 crore are eligible to raise funds overseas.

* Bad loans of such firms should not exceed 2.5 per cent of the net advances & it should have minimum net owned funds of nearly Rs. 300 crore for the past three (3) years to borrow overseas.

Share:

No comments:

Post a Comment

Popular Posts

Blog Archive

Recent Posts

Featured Post

Investors who have held these 13 stocks over the past 5 years have only incurred losses.

Investors who have held these 13 stocks over the past five years have only incurred losses. 🔻Yes Bank -72.9% 🔻Bandhan Bank -68.6% 🔻Rajesh...