NAREDCO sets up finance committee to help builders in getting funds

National Real Estate Development Council (NAREDCO), under the Ministry of Housing and Urban Affairs (MoHUA) has formed a Finance Committee (NFC) on the sidelines of NAREDCO 24th Annual General Meeting to enable developers easy access to funds based on merit and viability of the projects. 

The Committee will operate as a one-stop-shop, aggregating financing options from multiple large financial institutions. Merchant bankers, Resurgent India Limited will be actively associated with the NFC, said NAREDCO in a statement.

The NFC will also support large-scale projects to access funds via financial institutions and educate members to enhance their credit ratings.

Rajan Bandelkar, National President of NAREDCO said in a statement that NFC has been formed to help the industry and developers and infuse liquidity into the system and help the consumers too with ready-to-move-in projects. 

“The establishment of NFC will help us create a pipeline of project deliveries in coming quarters and years, and also help consumers to get home loans when the need arises,” said Bandelkar.

NAREDCO members can submit their application online for further processing with minimum documentation. The Committee and NAREDCO have partnered with financial institutions to limit the processing and in-principle approval time to 15-30 days for an application.

“The newly-formed Committee will focus on project financing, which would fulfil the practical requirements of construction by adhering to the construction cycle,”said Satish Kumar, Chairman, NAREDCO Finance Committee.

By facilitating specialised banking products and funding, the Committee will transform the real estate sector,” said Kumar.

The committee will help in the provision for waiving the processing fee, award of concession on the applicable interest rate, and quick project approvals for financing with minimum documentation.

“As the Committee possesses a definite knowledge of financing policies and schemes of the governments and institutions for the real estate sector in India, builders seeking financial assistance would get facilitated with all the updates on the latest schemes of the Central and State Governments as well as financial institutions, said Parveen Jain, Chairman, NAREDCO.

Niranjan Hiranandani, Vice Chairman, NAREDCO said that developers, especially those in tier 2 and 3 cities can immensely benefit from the financial literacy the Committee will provide. It will act as a platform to showcase real estate-specific schemes through online sessions and webinars, promotional roadshows, knowledge-based industry seminars and the NAREDCO website.