RBI defunct the 20:80 schemes loans of builders

By Accommodation Times News Service

Giving a strong blow to builders and developers the Reserve Bank of India (RBI) has barred the banks for giving loans for under constructions projects for schemes like 80:20.Basically in the 80:20 schemes 20% is paid by the buyer and 80% paid by the bankers on the words of builders even before the construction starts as construction finance which later converted in housing finance by the builder and banker.

The scheme provides the builders profit as construction loans are cheap and banks too gains profit from this as they classified as mortgage and not constructions which require higher provisioning.

Previously also we had notified our readers about the frauds conducted on the name of benefiting the customers under 80:20 scheme.

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