HFCs: Home alone

'The burden of unsold inventory of over half a million housing units in the top 7 cities will worsen due to impact of the pandemic. Business process re-engineering will hold the key to the future'

A  couple of months back when the economy was just gaining momentum, housing finance companies (HFCs) were chalking out plans for meeting the growing demand for home loans. The Covid-19 pandemic has drastically altered this outlook, disrupting the financial sector in its wake.

The government and Reserve Bank of India (RBI) have taken several measures to support and ease cash flow across sectors. The stimulus packages are directed to improve upon private consumption, demand generation and investment which are needed to spur GDP growth.

The three-month moratorium on term loans outstanding as on 1 March 2020, and the interest thereon,