Shares in real estate companies fell after the Reserve Bank of - TopicsExpress



          

Shares in real estate companies fell after the Reserve Bank of India (RBI) said late on Tuesday that housing loans from banks to individuals should be closely linked to the stages of construction. Upfront disbursal of lump sum loans should not be made in case of incomplete or housing projects under construction, the central bank said. DLF Ltd slumped 3.9 percent, Indiabulls Real Estate Ltd fell 3.8 percent, while Housing Development & Infrastructure Ltd lost 3.2 percent. Analysts say this may lead to further liquidity issues, lower sales for developers, which can force them to cut prices. The Reserve Bank of India said on Tuesday housing loans from banks to individuals should be closely linked to the stages of construction. The central bank said such loan products, popularly called 80:20 or 75:25 schemes, are likely to expose the banks as well as their home loan borrowers to additional risks. Upfront disbursals of lump sum loans should not be made in case of incomplete or under-construction housing projects, the central bank added. source: NDTV
Posted on: Thu, 05 Sep 2013 08:52:38 +0000

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