Real estate developers hail RBI governor Shaktikanta Das for EMI moratorium extension, key rate cut
Real estate developers have welcomed the 40 bps repo rate cut and reverse repo rate cut by the Reserve Bank of India (RBI) Governor Shaktikanta Das led Monetary Policy Committee (MPC).
Real estate developers have welcomed the 40 bps repo rate cut and reverse repo rate cut by the Reserve Bank of India (RBI) Governor Shaktikanta Das led Monetary Policy Committee (MPC). They are of the opinion that it will infuse liquidity in the market which will help developers to meet their funding needs. However, they were in extra praise for the RBI Governor for extending the EMI moratorium for additional three months as it would help home buyers to come out of the stressed EMI payments.
Speaking on how these RBI moves will help the real estate sector Anuj Puri, Chairman – ANAROCK Property Consultants said, "All sectors including real estate have been severely impacted (during Coronavirus lockdown). To this gloomy backdrop, the RBI’s repo rate cut of 40 bps – from 4.40 per cent to 4 per cent now - is a welcome move. Simultaneously, for the second time in a month, the reverse repo rate has also been slashed by another 40 bps and now stands at 3.35 per cent." He said that it was another big step of RBI Governor Shaktikanta Das led MPC, which will ease liquidity for developers - the rate cut will not only send out positive signals but will enable banks to lend even more. Thus, the rate cuts combined with the further extension of loan moratoriums by 3 months up to August 31, 2020 augurs well for the real estate sector in the times to come.
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Hailing the EMI Moratorium extension Amit Modi, President-Elect at CREDAI — Western UP chapter said, "We wholeheartedly welcome the extension of 3 month moratorium on EMIs till 31 August and this should be applicable right away to bring relief to millions of homebuyers across the nation."
Dhruv Agarwala, Group CEO at Housing.com said, "RBI key rate cuts along with the move of extending loan moratorium for another three months will be extremely helpful in lowering the burden for those who are paying EMIs or using credit cards and lower financial stress. What needs to be seen is how quickly the banks reflect this change in their respective rates."
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