Ratings for housing Projects Soon: NHB


The National Housing Bank (NHB) on recently said it will soon come up with a rating for housing projects in association with banks, to help buyers make informed decisions.

"We have sought  Reserve Bank of India (RBI) nod to launch the NHB - IBA rating for real estate projects. We expect to launching the rating soon. But, we are not planning to make it mandatory for all," NHB Chairman and Managing Director Mr. R V Verma said in Mumbai.

Using the rating ranging from 1 to 7 (seven being the best one) for a project, a potential buyer can make a more informed decision and go for the best project.

The rating will be given by one of the registered rating agencies & be made public. Aspects such as financial details, legal issues such as land titles, track-record of the builders, approvals received by the project  & repayments made to financiers among others will be considered while arriving at the rating.

“We have suggested that let us not make the rating mandatory for projects. Rather, we can incentivise its use through various means,”  Mr. R V Verma said.

The incentives will include concessional interest rates to borrowers opting for projects with better rating & also concessional interest rates to the builders for their project loans from the lenders, he also said.

Mr.Verma said a committee of stakeholders, including representatives from the banking sector and rating agencies, which he headed, had recommended the introduction of such a rating system.


It can be noted that the government has been making attempts at coming up with a law to regulate the real estate sector, which will keep tabs and prevent any wrongful activities. 
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