RBIs new decision will be beneficial for 20,000 housing societies in Maharashtra

Vice-Chairman of Maharashtra housing federation Suhas Patwardhan informed that the housing finance limit of 5% of total assets is expected to boost the self-redevelopment of societies in Pune, Thane and Mumbai.

PUNE: RBI‘s new decision to allow cooperative banks to grant finance for the commercial real estate-residential housing segment will be beneficial for 20,000 housing societies and apartment planning self-redevelopment in Maharashtra.

Suhas Patwardhan also reported “Real estate projects involving redevelopment are key areas in the property market, especially in growing cities. As per the RBI notification, all district cooperative banks and state cooperative banks will be able to grant loans to housing societies for self-redevelopment instead of them handing over the project to a developer for commercial real estate-residential housing according to the notice on June 8,”

This decision may open more liquidity and financing avenues for the development of real estate.

Some federation members commented that it will help housing societies to implement the 2019 GR for the promotion of self-redevelopment. 

Shrikant Karegaonkar, bank manager informed that the RBI monetary policy has doubled the limit of housing loans for cooperative banks. He further added “It will help reduce the impact of inflation by pumping more funds into the housing sector and open opportunities to customers with the cooperative sector,”

Housing society members added that while 5% of the total assets look small in comparison to the demand, this limit is expected to be extended and it’s a good start.

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