NHB to launch ratings for housing projects soon: Chairman

Tags: News
In what may serve as a proxy to the long-delayed realty regulator, the National Housing Bank today said it will soon come up with a rating for housing projects in association with banks, to help buyers make informed decisions.

"We have sought Reserve Bank nod to launch the NHB-IBA rating for real estate projects. We expect to launching the rating soon. But we are not planning to make it mandatory for all," NHB Chairman and Managing Director RV Verma said here.

Using the rating ranging from 1-7 (seven being the best one) for a project, a potential buyer can make a more informed decision and go for the best project.

The rating will be given by one of the registered rating agencies and be made public. Aspects like financial details, legal issues like land titles, track-record of the builders, approvals received by the project and repayments made to financiers among others will be considered while arriving at the rating.

"We have suggested that let us not make the rating mandatory for projects. Rather, we can incentivise its use through various means," he said.

The incentives will include concessional interest rates to borrowers opting for projects with better rating and also concessional interest rates to the builders for their project loans from the lenders, he said.

Verma said a committee of stakeholders, including representatives from the banking sector and rating agencies, which he headed, had recommended the introduction of such a rating system.

It can be noted that the government has been making attempts at coming up with a law to regulate the real estate sector, which will keep tabs and prevent any wrongful activities.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • India and the US have come a long way from the frostiness of the Cold War

    As far as atmospherics go, it could scarcely be bettered.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

When we the people fail our nation

Today, we turn 65 years old as a republic. A ...

Purnendu Ghosh

The relative measures of time

Clock, the time-keeper, is our central machine. This machine dictates ...

Shona Adhikari

All roads lead to Delhi, as it gears up for art fair

With the seventh edition of India Art Fair (IAF) coming ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture