Easy and dedicated access to institutional financing, higher limit on external commercial borrowings (ECB) will attract more investments and assure sustained growth of affordable housing in India, making it the core driving segment for real estate, said Mr Sriram Kalyanaraman, Managing Director & CEO, National Housing Bank at an ASSOCHAM event held in New Delhi today.
The Foreign Direct Investment (FDI) and Foreign Institutional Investors (FIIs) will play a key role in boosting supply of houses and infra projects in urban areas, said Mr Sriram Kalyanaraman, Managing Director & CEO, National Housing Bank while inaugurating an ASSOCHAM National Summit on Housing Finance for All.
Mr. Ravindra Sudhakar, Co-Chairman, ASSOCHAM National Council on Affordable Housing and Executive Director & CEO, Reliance Home Finance Limited said “While the progress made in housing sector development is commendable, it must be driven at an accelerated pace hereon. We - financiers, builders, banks -must accelerate our efforts in achieving the goal of housing for all. "
“On the other hand, long term financing at lower rates will reduce costs of construction for developers allowing them to pass on benefits to consumers. Also, in India there is a need to develop a secondary mortgage market either in the form of RMBS (Reverse Mortgage Backed Securities) or Covered Bonds. Simplification of external commercial borrowing (ECB) guidelines has opened a new window of funding for housing finance companies in India, increasing the prospects of a fresh round of overseas borrowings”, said Kalyanaraman.