Credai against linking of home loans to construction stages

Criticising the Reserve Bank's decision to link disbursal of home loans to stages of construction, real estate apex body Credai said the move will harm developer sentiment and disturb business plans. RBI today asked banks to link the disbursal of home loans to stages of construction to protect the interests of buyers and contain the fallout of "innovative" housing financing schemes. It has directed banks that upfront disbursal "should not be made in cases of incomplete/under-construction/ green field housing projects". Confederation of Real Estate Developers' Associations chairman Lalit Kumar Jain said: "Housing finance institutions or banks normally safeguard their interest while devising such instruments.