The Reserve Bank of India has informed banks that any additional housing loans granted for revitalised real estate projects under a dedicated government scheme should be considered standard loans. This information was conveyed to banks through a communication last month. In 2019, the government established the Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund to aid in the completion of stalled housing projects.
A committee, led by the country's G20 sherpa, Amitabh Kant, had proposed various measures, including additional loans for borrowers, to revive stagnant projects.
According to a bank executive who is aware of the communication shared with lenders, "The regulator has stated that any additional funding or disbursement of residual parts of the housing loans by banks post-involvement of SWAMIH shall be treated as standard." Currently, these home loan accounts in stalled projects are categorised as non-performing loans.
