CREDAI-MCHI urges RBI for interest waiver on term loans for lockdown period, additional 30 days

Realtors' body CREDAI-MCHI, which represents 1,800 builders of the Mumbai region, has written to the Reserve Bank of India (RBI) seeking interest waiver on term loans for the period under lockdown and an additional 30 days.

The association welcomed the RBI's recent measures to cut interest rate and boost liquidity into the financial system, besides a moratorium of three months on all term loans due as on March 1, 2020.

However, the Confederation of Real Estate Developers' Associations of India, Maharashtra Chamber of Housing Industry (CREDAI-MCHI) said more steps needed to be taken to help the real estate sector, which had been facing demand slowdown and liquidity crunch even before coronavirus outbreak.

In a letter addressed to the RBI, the industry body has sought one-time restructuring of their outstanding loans, it said in a statement.

"All lending institutions, governed by the RBI, should allow a moratorium of six months of all dues and overdue installments/EMI/interest of all loans, including term loans, which are outstanding as on 1st March 2020," it added.

No interest should be charged for the period of lockdown plus thirty days, the association said.

"Further, we request to clarify that term loan' to include working capital term loan (WCTL) or a funded interest term loan (FITL) or debentures subscribed by the lending Institution," it said.

CREDAI-MCHI President Nayan Shah said: Considering the current predicament of Indian real estate, the industry yearns for more decisive and potent initiatives that will reinstate stakeholders' belief.