Indiabulls, Edelweiss look to launch AIFs to advance realty loans

Edelweiss is also moving in the same direction after it sold developer loans to investors.

Financial services groups, such as Indiabulls and Edelweiss, are looking to launch alternative investment funds (AIFs) to advance loans to property developers.
 
This comes after they sold developer loans to investors to de-risk their books and generate funds after the liquidity crunch in the non-banking financial sector (NBFC) following IL&FS defaults.
 
AIFs are pooled investment funds that put in money in private equity, real estate, etc. They are a better way to manage wholesale funding for real estate, given that it is difficult to keep tabs on ALM (asset liability management) and compliances related to classifying loans in