In a note, the chamber has pointed out that the existing gap of 50 per cent of project cost, which can be financed by FIs and banks in case of power projects, needs to be enhanced to at least 70 per cent of the project cost to cover the volatility of exchange rates.
To boost the construction sector, which is the biggest generator of employment, it has been suggested by Assocham, that a mortgage insurance guarantee fund for quick loan disbursement be set up, with 25 years spread and transferable mortgages for end users.
Additionally, bank loans could be disbursed within a few dates and interest for mortgage loans could be around 8 per cent for all segments of the housing sector.
Assocham has suggested the improvement of credit flow by retail and wholesale trade, marketing and distribution sectors by earmarking a certain percentage of their funds for these sectors.
The chamber has also called for flexible lending norms for bank finance to software and information technology (IT) without the hassles of collaterals or guarantees and securities are needed.