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videos | IST

Will liquidity crunch in NBFC sector make homebuyers wait longer?

Besides the financial sector, the real estate business may also face the heat due to the ongoing crisis in the NBFC sector, triggered by IL&FS default.
Due to the crisis in NBFCs, their loan disbursals to developers have slowed down significantly.
While bank credit growth in the last two years averaged at a mere 7 percent, a strong 20 percent-plus growth in NBFC credit aided overall credit expansion beyond 10 percent.
Delivery of over 5 lakh housing units across the country are delayed by over a year and most of these are concentrated in the top 12 cities.
Experts discuss whether this current squeeze on funding to developers by  NBFCs hit the project deliveries further and should home buyers brace themselves for more wait for their homes.