NRI loan interest rate depends a lot on the reason of borrowing. When the reason is to invest in share or commercial immovable property market, the interest rate to be paid is higher than any loan borrowed by the NRI to be invested at an employment generating project.
The RBI has recently prohibited public and private sector banks from lending more than Rs 20 Lakh against the deposits of NRIs. This ban is imposed by the apex bank on doubt that a huge part of such loans is being diverted for speculation in shares and immovable property market. These cautious steps from the apex banking body are aimed at ensuring that bank credit is streamlined towards productive sectors other than the retail sector. It will definitely squeeze the extra investment flow particularly in commercial real estate and capital markets. The hike in standard assets provisioning will lead to a raise in retail lending rates.
-
-
Property Listings- 3 bedroom Villa/Bungalow for Rent in Chanda Pur, Bangalore ( #6097446)
- Residential Plot / Land for Sale in Arumbakkam, Chennai ( #8992552)
- 1 bedroom Independent House for Rent in HSR Layout, Bangalore ( #7093221)
- Residential Plot / Land for Sale in Anna Nagar, Chennai ( #6039033)
- Industrial Plot / Land for Sale in Mugappair, Chennai ( #8073676)
- Industrial Plot / Land for Sale in Sriperumbudur, Chennai ( #9624161)
- Industrial Plot / Land for Sale in Sriperumbudur, Chennai ( #1704882)
- 6 bedroom Independent House for Rent in Velachery, Chennai ( #1325587)
- Residential Plot / Land for Sale in Tellicherry, Cannanore ( #195981)
- Office Space for Rent in Nungambakkam, Chennai ( #8295238)
2 Comments
Sensing a correction in the real estate sector, commercial banks have become selective in lending to new residential and commercial real estate projects. Besides increasing the lending rates, some banks have asked the promoters to increase their share in project funding in an attempt to mitigate the associated risks. Banks have already turned selective in taking up new funding proposals. The Reserve Bank of India has already declared the real estate space as a sensitive sector under its prudential norms. The sector thereby attracts higher risk weightage (banks have to set aside higher amount of capital for real estate exposure) and the lending is closely monitored. Keeping with the rising cost of funds and the need for additional capital for risky assets, the banks have increased the lending rates for real estate projects. The real estate companies are now paying prime lending rates (PLR) for new projects. The growth in loans to commercial real estate remained high, notwithstanding some moderation, RBI said in its macro-economy report for 2007-08.For more view- realtydigest.blogspot.com
But what will be the benefit after that policy ? Will it be in favour of both ?