Housing projects should have access to finance from banks, not depend on customer advances: Housing secretary The Times of India
Flagging the real estate sector’s heavy dependence on money of homebuyers to build houses, Union housing secretary Manoj Joshi said on Monday that they need to access finance from the banking system. He added real estate projects, especially housing, are largely funded through customer advances and this model needs to be changed.
Speaking at an event on the real estate sector organised by industry body, CII, Joshi also pitched for a “credible framework” to differentiate between good and bad real estate developers, enabling the sector to access credit easily from banks to build projects. He suggested that the credible framework could be a rating system and appraisal of past performances.
