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Property developers, who have been battling a prolonged slowdown in sales, have seen their borrowing costs go up by 200-300 basis points (bps).
Lenders such as non-banking finance companies (NBFCs), housing finance companies (HFCs), and private equity (PE) funds are asking for higher rates, a fallout of tightening liquidity after the Infrastructure Leasing & Financial Services (IL&FS) crisis.
Along with HFCs, NBFCs account for about 60 per cent of real estate developers’ loans as banks stayed away from lending to developers for purposes such as buying land and refinancing in the last couple of years.
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