Skim off realty: No more 20:80 or 25:75 schemes

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SummaryDiscouraging innovative schemes, RBI has asked banks to link home loan disbursals to stages of construction.

proportion of projects offered under the 20:80 schemes is 15-20% and those which offer up-front disbursement of funds to developers is much lower,” says the note.

However, analysts feel the notification on the 20:80 scheme will impact developers’ cashflows. Gulam Zia, executive director, Advisory, Retail & Hospitality of Knight Frank India, says, “Already worsening liquidity position due to reducing sales will be further deteriorated with the stoppage of the 20-80 scheme. This for sure will have an adverse impact on developers, those with deeper pockets can sustain, but the rest will have to either sell their core assets to bigger developers or reduce the price expectations from home buyers.”

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