In June 2014,
With the government vision to provide ‘housing for all,’ the funding needs of the domestic mortgage lenders grow in step, according to the Moody’s report. It also added that there is scope to develop RMBS market into a larger funding source, especially for those lenders who have focused on affordable housing.
The report added, “Prime Minister Narendra Modi’s ‘housing for all by 2022′ goal will boost the emerging RMBS market, though challenges remain for the development of the sector.”
The RMBS issuances, in 2014, rose 75% to Rs 5,300 crore. However, the Moody’s report asserted that this growth was from a low base and the sector remains relatively small, as per a PTI report.
In urban areas, the country faces a housing shortage of about 18.78 million units, the rating agency estimated.
By slashing minimum investment to $10 million, the
In 2015,
A PTI report suggested, Moody’s also warned that new tax rules have led to lower post-tax returns for bank investors in RMBS. On the other hand, a tax-related legal apprehension has prevented mutual fund investors from participating in the market.
(Image: Indiatimes)