22 , October , 2022
In a major announcement, the National Real Estate Development Council (NAREDCO), an apex body formed under the aegis of the Ministry of Housing and Urban Affairs, Government of India, has launched NAREDCO Finance Committee (NFC), which would enable developers to have easy access to funds based on merit and viability of the projects.
The NFC will facilitate its members to access funds professionally while matching its members’ financing requirements with the banks, financial institutions and Non-Banking Financial Companies lending to the real estate sector. The NAREDCO Finance Committee launched on the sidelines of NAREDCO 24th Annual General Meeting held at New Delhi.
Merchant bankers, Resurgent India Limited will be actively associated with the NFC.
The NFC will also support large-scale projects to access funds via financial institutions and educate members about the ways to enhance their credit ratings, NAREDCO said in its statement. “NAREDCO’s noble and unique initiative, the launch of the NFC has a larger developmental goal. While on one hand, we wish to help the industry and developers and infuse liquidity into the system, we plan to help the consumers too with ready-to-move-in projects. Overall, the country will benefit with a healthy supply of units,” said Rajan Bandelkar, National President, NAREDCO.
The services of NFC will be easy to access and use. NAREDCO members can apply online and submit their application for facilitation and funding assistance. The Committee and NAREDCO have partnered with financial institutions to limit the processing and in-principle approval time to 15-30 days for an application.
Satish Kumar, Chairman, NAREDCO Finance Committee, said, “The industry continues to face a liquidity crunch. We hope to make it a better-designed and organized sector soon. The newly formed Committee will focus on project financing, which would fulfil the practical requirements of construction by adhering to the construction cycle. By facilitating specialized banking products and funding, the Committee will transform the real estate sector”.
While there would be a provision to waive the processing fee, the Committee will help in several other ways, including a provision for waiving the processing fee, award of concession on the applicable interest rate, and quick project approvals for financing with minimum documentation.
Member applicants will have other benefits too. “We wish to educate our members on financing and services. Developers, especially those in tier 2 and 3 cities can immensely benefit from the financial literacy the Committee will provide. It will act as a platform to showcase real estate-specific schemes through online sessions and webinars, promotional roadshows, knowledge-based industry seminars and the NAREDCO website,” said, Dr. Niranjan Hiranandani, Vice Chairman, NAREDCO.
