Srushti Vaidya’s Post

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Business journalist. Covering equities for Moneycontrol.

At a time when banks and other financial institutions have become cautious in lending to the real estate sector, AIFs have emerged as a popular vehicle for financing real estate projects. According to industry players, Category II AIFs are taking a lead in making funds available for realtors by subscribing to NCDs or non-convertible debentures issued by developers. Why are real estate developers going to AIFs but? Even though banks charge a lower rate of interest as compared to a AIF fund, banks mostly lend for construction activities. While and AIF fund can lend for land acquisitions, approval fees. Also even if banks agree to lend to realtors, yhe commercials turn out to be very difficult for real estate developers. Read full story here : https://rb.gy/0huhtb

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