RBI Changes 80:20 Home Loan Norms

The Reserve Bank of India (RBI) has stopped banks from offering home loan products such as the 80:20 or 75:25 schemes that make upfront payment to builders for under construction projects. It has advised them to closely link stages of construction of a housing project with home loan disbursal.

RBI feels such loans pose to be risky to the buyer as well as the lending banks. Buyers run a risk of completion delays in the project once their money has been locked. And under the current financial crunch, banks stand a risk of their funds getting stuck due to delay in construction and the matters getting into a dispute zone where the funds eventually end up being locked for a significant amount of time.

While many developers have not taken this decision very positively and feel this will further aggravate the liquidity crunch and in turn affect the buyers, most lenders are feeling this brings down the risk element for them. Industry goers also feel that this move may lead to price correction in the market.

As a leading developer in the real estate space, SARE Homes understands the implications of this decision but completely respects the RBI guidelines. We have always strived to ensure that our investors and customers feel secured and well invested in us.

SARE Homes excels at Estate Avenues Awards 2013

SARE Homes has yet again proved its grit in the real estate sector at the recently concluded Estate Avenue's United Provinces Awards 2013.

SARE Homes won three awards at this prestigious event, namely ‘Best promising project of the year’ for Petioles, Gurgaon; ‘Integrated township developer of the year’ and ‘Emerging Developer of the Year’. On top of that, a special ‘Professional Leader in Real Estate sector’ was also awarded to Mr. Vineet Relia, Chief Operating Officer, SARE Homes for his contribution to the sector. The awards were organized by Estate Avenues, the leading real estate monthly published by SS Media House.

The proud winners were chosen, subsequent to an extensive and rigorous selection out of the real estate developers. The eminent jury for Estate Avenues Awards 2013 consisted of Carlos Jimenez Aguirre, Chief Economic & Commercial Counselor Spanish Embassy in India, Dr. Anil Kumar Sharma, President of CREDAI-NCR, Col. (Veteran) Prithvi Nath, VSM, Head North NAREDCO, Dr. P S Rana, Chairman Bostan TCS, Former Chairman and Managing Director (HUDCO), Mousumi Roy, Real Estate Head FICCI and many other distinguished luminairies. Winning these awards is an acknowledgment of SARE's performance in India and its zeal to deliver best-in-class service to its customers and mobilize resources to ensure on-time delivery of its projects.

Winning these awards is an acknowledgment of SARE's performance in India and its zeal to deliver best-in-class service to its customers and mobilize resources to ensure on-time delivery of its projects.

Estate Avenues' United Province Awards is an annual award which felicitates the contribution of Real estate companies. The Awardees were chosen after a rigorous selection of developers from Northern region. The event held at Eros Hilton Hotel on September 1, 2013 was attended by the stalwarts and gentries of the real estate sector.

A panel discussion, namely Manthan, was also organized which saw Mr. Vineet Relia sharing his thoughts, vision and ideas on topics such as illegal sand mining, concept of mixed use development and the role of private developers in providing low-cost housing to its fellow citizens.

Commenting on the occasion, David Walker, Executive Director, SARE Homes said, “It is indeed a joyous moment for us! We have always strived to provide the best value proposition and unique concepts through our products which have been appreciated by all our home owners.”

Vineet Relia, Chief Operating Officer, SARE Homes further said, “These awards give us immense confidence to develop housing units for people with taste and aspiration. Having executed projects across the country has helped us gain immense knowledge and expertise. We will continue to walk the path of offering a range of residential homes and providing a variety of lifestyle choices for our customers. We will always endeavor to live up to our loyal customer's expectations.”

The award function was preceded by United Provinces Real Estate Expo 2013 which focused on real estate developments in the United Provinces zone, a regional identity formed in 1902 British India by merging two major British India administrative units – Agra & Oudh. The United Provinces included Modern UP, Uttrakhand, Delhi, Haryana, and parts of Rajasthan & Madhya Pradesh.