The document summarizes the current and future state of the Indian real estate industry. It discusses opportunities in various real estate sectors like commercial, residential, retail, and hospitality. Government policies like lowering interest rates and increasing FDI have supported growth. Recent reforms include allocating funds for smart cities and affordable housing. Overall, the industry is growing due to rising incomes, a booming IT sector, and government promotion of real estate investment.
Mumbai Real Estate Analysis 2019-2020 by HomebookingindiaHome Booking India
Real estate is one of the major contributors to India’s GDP, and the market saw several progressive policy reforms in the last couple of years. While it’s true that most of these reforms were taken back in 2017-2018, the impacts were seen largely in 2019-2020
Mumbai Real Estate Analysis 2019-2020 by HomebookingindiaHome Booking India
Real estate is one of the major contributors to India’s GDP, and the market saw several progressive policy reforms in the last couple of years. While it’s true that most of these reforms were taken back in 2017-2018, the impacts were seen largely in 2019-2020
Real estate is "property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; (also) an item of real property; (more generally) buildings or housing in general. Also: the business of real estate; the profession of buying, selling, or renting land, buildings or housing.
National Real Estate Development Council (NAREDCO) speech building a New Ind...Manoj Benjamin
Building a New India
National Real Estate Development Council NAREDCO
Under the Aegis of Ministry of Housing & Urban Poverty Alleviation
Government of India
By Manoj C. Benjamin, Chairman Royal Indian Raj International Corporation*
2000,New Delhi, India
“ According to Government of India Estimates Approximately US200Billion will be required over the next 7-10 Years for Basic Infrastructure Projects”
Real estate is one of the fastest growing sectors of the Indian economy and contributes about 5 per cent to India's gross domestic product (GDP).
The country's economic growth is driving the demand for real estate in India. Demand for residential space is expected to grow at a compound annual growth rate (CAGR) of 19 per cent between 2010 and 2014 - Tier 1 metropolitan cities are expected to account for about 40 per cent of this. The top three cities - Mumbai, the NCR and Bengaluru account for 46 per cent of total office space demand in India.
Indian real estate sector is the fourth largest sector in terms of foreign direct investment (FDI) in the country. During April 2012-January 2013, the sector accounted for 8.8 per cent of total FDI inflows into India. FDI in the sector is estimated to grow to US$ 25 billion in the next 10 years.
Growing requirements of space from sectors such as education and healthcare provide opportunities in the real estate sector. Growth in the number of tourists has resulted in demand for service apartments.
Situation Analysis on Real Estate Businesskonatanzin
It is a depth situation Analysis done in a course Strategic Management with respected sir Mr. Tajuddin Ahamed. The report and presentation got A- grade in this course.
Sustainable Development sector in Vibrant Gujarat SummitVibrant Gujarat
The Government of Gujarat committed to make sure that the dividends of the rapid economic growth reaches the weakest sections of the society. This is reflected in the policies and programs directed towards sustainable human development
Real estate is "property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; (also) an item of real property; (more generally) buildings or housing in general. Also: the business of real estate; the profession of buying, selling, or renting land, buildings or housing.
National Real Estate Development Council (NAREDCO) speech building a New Ind...Manoj Benjamin
Building a New India
National Real Estate Development Council NAREDCO
Under the Aegis of Ministry of Housing & Urban Poverty Alleviation
Government of India
By Manoj C. Benjamin, Chairman Royal Indian Raj International Corporation*
2000,New Delhi, India
“ According to Government of India Estimates Approximately US200Billion will be required over the next 7-10 Years for Basic Infrastructure Projects”
Real estate is one of the fastest growing sectors of the Indian economy and contributes about 5 per cent to India's gross domestic product (GDP).
The country's economic growth is driving the demand for real estate in India. Demand for residential space is expected to grow at a compound annual growth rate (CAGR) of 19 per cent between 2010 and 2014 - Tier 1 metropolitan cities are expected to account for about 40 per cent of this. The top three cities - Mumbai, the NCR and Bengaluru account for 46 per cent of total office space demand in India.
Indian real estate sector is the fourth largest sector in terms of foreign direct investment (FDI) in the country. During April 2012-January 2013, the sector accounted for 8.8 per cent of total FDI inflows into India. FDI in the sector is estimated to grow to US$ 25 billion in the next 10 years.
Growing requirements of space from sectors such as education and healthcare provide opportunities in the real estate sector. Growth in the number of tourists has resulted in demand for service apartments.
Situation Analysis on Real Estate Businesskonatanzin
It is a depth situation Analysis done in a course Strategic Management with respected sir Mr. Tajuddin Ahamed. The report and presentation got A- grade in this course.
Sustainable Development sector in Vibrant Gujarat SummitVibrant Gujarat
The Government of Gujarat committed to make sure that the dividends of the rapid economic growth reaches the weakest sections of the society. This is reflected in the policies and programs directed towards sustainable human development
Research report on Strategic Finance & Real Estate in IndiaSaurabh Trivedi
Prepared research report on Strategic Finance & Real Estate in India presented Indian School of Business (ISB, Hyderabad) on November 9th, 2012. The report consist of real estate trend in India in the year 2012. Comparison among the various funding options available for real estate development in India. REITS operation in India and discussion about yield generating assets. Emerging real estate asset class in India.
Lake Lanier Waterfront Home Sales Market Analysis 2016Arthur Prescott
Lake Lanier Waterfront Home Sales Trends For 2016. Our market analysis is generated at the beginning of each month. It is designed to show you Lake Lanier home sales statistics.
WeOwn.in is a real estate company which helps users buy real estate - apartment, villa, plots or farm house, at genuinely low prices AND with no charge or fee.
Impact of COVID19 on Real Estate in IndiaSam Ghosh
According to a JLL report, sales of residential units decreased by 29% in Q1 2020 over the same period last year. Net absorption of office spaces in Q1 2020 witnessed a decline of 30% from the peak observed in Q1 2019. The real estate industry Is dealing with distress in the short term without any doubt.
Long term prospects are quite mixed though.
Young professionals are likely to avoid shared accommodations in the aftermath of COVID and prefer either owning or renting/leasing private accommodations. A lower interest rate environment creates a favourable environment. Although financial uncertainties may stop them from committing to debt payments. Well designed package of flexible financing, leasing, and payment options may help residential real estate players grow in spite of economic slump.
For commercial real estate players, work from home culture and subdued business sentiment draw a bleak picture. The focus should be on maintaining occupancy and alternative use of assets.
Social distancing, economic distress, and rapid growth of e-commerce may affect long term prospects for retail real estate. Retail real estate players need to adapt to changes in demand. For example, cloud kitchens in place of sit-down restaurants and high-street shops in place of malls.
A lingering fear of infection, work from home culture, etc. may cause medium-term depression in both business and leisure travel. This will result in depressed demand for the hospitality sector for a few quarters. Hospitality real estate players need to find an alternative use for their assets if the hospitality demand does not pick up and operators start going out of business.
February 2015 Edition of BEACON, A Monthly Newsletter by SIMCON.
Inside this issue:
About Us
Our Team
INDUSTRY ANALYSIS : Real Estate Industry
COMPANY ANALYSIS : DLF
BRAND ANALYSIS : Coca Cola
Event Report: Guest Lecture on Behavioral Finance
Concept of the month
India Real Estate Market [2029]: Size, Share, and Competitive Intelligence R...Kumar Satyam
According to a report by TechSci Research, titled "India Real Estate Market - By Region, Competition, Forecast and Opportunities, 2029," the Indian real estate market is poised for robust growth during the forecast period of 2025-2029. This projection can be attributed to the emerging trend of urban and semi-urban accommodation and the rising demand for modern office spaces. Furthermore, the country's expanding e-commerce industry is driving the need for warehousing facilities, which is boosting the market's growth.
Looking to invest in real estate in India? What are the major factors or elements that you should pay attention to in order to maximize your returns on property investment? find it all in this detailed document.
Perception and Expectation of customer in real estate (ghaziabad,UP)Shubham Aggarwal
India is an over populated country and day by day population is increasing rapidly which created the housing problem. Land prices skyrocketed. Due to high price, insufficiency of land, high cost of land registration, and high price of building materials, people are now not interested to buy a land for building their own house. That’s why they turn to real estate companies who are providing flats or apartments. In response, real estate business has enjoyed a boom over the years. In all over the India, there are now companies growing up like Ansal , wave etc. these companies also spreading throughout other divisional and district towns. There are some secondary literature based articles like real estate financing by Sarkereal. (2011). But there is little research, specifically primary data based one, - what customers are looking for, why they are choosing particular apartment, particular company and for what factors.
Real Estate and promotional strategies in Puravankara Projects LtdSrihari Reddy
In today’s dynamic and competitive environment, every business depends on the acceptance of the customers. Customers have numerous choices to make the final decision and they are heavily influencing the companies in regard to the product price, quality and sizes. Among the different marketing communication tools, companies are giving attention to the sales promotion to attract the customers. Therefore, the aim of this research paper is to determine the impact of sales promotion on the consumer home buying behavior.
OBJECTIVE
Covid-19 has gripped the entire world including India with its adverse impact, affecting predominantly all industries and sectors. In these times of economic and financial distress owing to the catastrophic outbreak, we would intend to discuss the influence of Covid 19 on the Indian real estate sector. The sector was already having a bad phase before the outbreak of Covid-19; we shall focus on the opportunities which the pandemic would bring for its revival and the way forward in re-engineering the entire sector.
a group of people who share a common vision, goals, metrics and who collaborate, challenge and hold each other accountable to achieve outstanding results. One can recognise a high performing team when the members have a clear and shared vision of where they are headed and what they have to accomplish.
Every idea does not become a technology. Idea which helps to evolve new products or which crystallise in new process, design, procedures etc. have a market value. The value they command will vary with their practical utility and profitability.
1. Indian Real Estate IndustryIndian Real Estate Industry
Present….Present….
Future…..Future…..
OpportunitiesOpportunities
Summary Report
1
2. Indian Real EstateIndian Real Estate
India Real Estate Investment is a significant feature of the Indian realty
market under the initiation of the investors and developers, leading to
future real estate development in India. The development of private
ownership of property real estate in India has become a major area of
business with India Real Estate Investment playing the vital role. India Real
Estate Investment involves minimum risk for getting maximum return.
India Real Estate Investment has rising demand in every sector like
commercial, residential, retail, industrial and hospitality. But maximum
demand is observed in the booming IT sector. The India Real Estate
Investment is facilitated by the liberal economic policies of the
government.
2
5. Factors favoringFactors favoring
Factors Favoring India Real Estate Investment:
1.Increasing growth in residential properties due to lower interest
rates, easy availability of housing finance, rising income, better job
prospects and increase of nuclear families.
2.Growth of retail market in India due to increasing demand from
retailers, higher disposable incomes and opening up of FDI in Retail.
3.Burgeoning IT and ITES industry
4.Growing commercial property market
5.Emerging hospitality or hotel industry due to the exceptional boom
in inbound tourism and the IT sector
6.Development of the special economic zones
5
6. Government RoleGovernment Role
Role of Government in India Real Estate
Investment:
The Indian government has been playing a proactive role in the
India Real Estate Investment and thereby promoting investors
to invest in Indian real estate market. The different laws governing
real estate are -
1.Indian Transfer of Property Act
2.Indian Registration Act, 1908
3.Indian Urban Land (Ceiling And Regulation) Act, 1976
4.Stamp Duty
5.Rent Control Acts
6.Property Tax
7.Foreign Exchange Regulation Act, 1973
6
7. Foreign RoleForeign Role
Foreign Role in India Real Estate Investment:
The liberal government policies have facilitated the expansion of the
foreign involvement in the India Real Estate Investment sector. At
present, the non-resident Indians have played a very important role in
transforming the Indian real estate market. Some of the important foreign
investors in the Indian real estate market are like-
Emmar Properties
Laing O'Rourke (LOR)
Morgan-Stanley Real Estate
Vancouver-based Royal Indian Raj International Corporation (RIRIC)
Indonesia-based Siputra Selim group
US-based Warburg Pincus
Blackstone Group
Broadstreet
Columbia Endowment Fund
California Public Employees' Retirement System (CalPERS)
7
8. InvestorsInvestors
India Real Estate Investors:
There are Indian institutions like HDFC, ICICI Venture and Kotak
Mahindra launching funds to invest in real estate market in India.
Indian Real Estate Investment Trust:
The Indian Real Estate Investment Trust will play significant role in the
investment in real estate helping the individual investors to own a
share of the profiting real estate market.
Currently in the Real Estate Investment World India there has been an
interactive discussion on the dynamic growth of the growing India real
estate market and the strong growth opportunities in rising sectors like
financial services, pharmaceuticals, telecommunications, and
biotechnology will further enhance the scope for India Real Estate
Investment.
8
9. Real Estate Updates- 2014Real Estate Updates- 2014
NDA government has decided a slew of measures to give a boost to the real
estate sector, including an allocation of Rs 7,060 crore for the development of
100 smart cities, a reduction in the size of projects eligible for FDI from 50,000
sq metres to 20,000 sqm and halving the minimum investment limit for FDI to
$5 million. Budget for developing 100 smart cities, redeveloping satellite towns
of major cities as well as other smaller cities. It also brought down the
minimum capital requirement to USD 5 million from USD 10 million.
In case of development of serviced plots, the condition of minimum land of 10
hectares has been completely removed. NDA government has also decided Rs
4,000 crore to affordable housing for the urban poor through the National
Housing Bank (NHB) and plans to extend incentives for housing loans. Slum
development has been made part of corporate CSR activities.
Foreign investors to exit on project completion or 3 years from the date of
final investment subject to the development of trunk infrastructure.
Setting up of an institution called 3P India with a corpus of Rs. 500 crore same
will help in mainstreaming public-private partnerships (PPPs) in the sector.
9
12. Affordable housingAffordable housing
Affordable housing can be defined using three key parameters viz.
income level, size of dwelling unit and affordability. While the first two
parameters are independent of each other, the third parameter is
correlated income. Housing costs here include taxes and insurance for
owners, and utility costs. If the monthly carrying costs of a home
exceed 30–35 percent of household income, the housing is considered
2 unaffordable for that household.
EWS
LIG
MIG
< INR 1.5 Lacs per
annum
Up to 300 Sq.ft. EMI to Monthly Income
• 30 to 40 Percent
House Price to Annual
Income Rati
• Less than 5.1 (Deepak
Parekh Force)
1 Income Level1 Income Level
2 Size of Dwelling
Unit
2 Size of Dwelling
Unit
3 Affordability3 Affordability
INR 1.5 to 3 Lacs
per annum
INR 3 to 10 Lacs
per annum
300 to 600 Sq.ft.
600 to 1200 Sq.ft.
12
13. Is affordable housing and low-cost housing the same?
Affordable and low-cost housing are often interchangeably used, but are quite
different from each other. Low-cost housing is generally meant for EWS category
and comprises bare minimum housing facilities while affordable housing is mostly
meant for LIG and MIG and includes basic amenities like schools, hospitals and
other community facilities and services.
Affordable housingAffordable housing
Parameters Low-Cost Housing Affordable Housing
Amenities Bare minimum to none Basic
Target Income Class EWS & LIG LIG & MIG
Size of Dwelling Unit <=300 Sq. Ft. 300-1200 Sq. Ft.
Location Generally which city but can also be located on
city peripheries due to high cost of land
Within City
Project Developer Mostly Government agencies Private Developers and
Government
Most available source of finance Micro finance institutions Traditional banking system
EMI to Monthly Income Not exceeding 30 percent of gross monthly
income
Not exceeding 40 percent of
gross monthly income
13
14. Role of PPP in Affordable HousingRole of PPP in Affordable Housing
Land Availability & Cost
Construction & Other Costs
Connectivity & Infrastructure
Credit delivery & Risk
Others
14
15. Effective use of available Government land
Land parcels currently in possession can be used for development, thereby reducing the cost of
land
Government can enter into joint ventures with developers with land as equity
Land Banking
Purchase of large strips by State Governments / Agencies
Distribution of land to private developers through a transparent process
FSI
Relaxation of FSI norms to reduce per flat land cost
FSI is an effective tool to provide a cashless subsidy to builders
Cross Subsidization
Joint development of MIG, LIG and EWS flats – MIG to subsidize others
Built-up space covering LIG and EWS to be sold / rented by Government agency; developer can be
allowed to sell MIG flats at market rates
Redevelopment / Rehabilitation
Increasing availability of prime land by redevelopment / rehabilitation
Role of PPP in Affordable HousingRole of PPP in Affordable Housing
• Land Availability & Cost
15
16. Single window approval for projects
Delays incurred in project approvals result in substantial cost overruns.
A single window will help reduce delays and contain costs
Reduction in approval related costs
Subsidizing construction costs
Reduction / exemption / deferment of taxes and duties on construction
materials
Subsidy to developers for R&D in new low cost materials and technologies
Subsidy to developer in view of employment generated
Lower cost of borrowing for development of affordable housing projects - can
be achieved if Government
agencies have a participatory interest in the project and guarantee the loans
Sales Tax and Stamp Duty
Exemption from sales tax and reduction in stamp duty
• Construction & Other Costs
Role of PPP in Affordable HousingRole of PPP in Affordable Housing
16
17. Development of urban infrastructure
PPP projects for accelerated urban infrastructure
Metro rail, Inter-city highways, Mono rail
Increase budgetary focus on urban infrastructure
Increase support to State Governments to engage in PPP projects
Integrated Townships
Joint developers with private players
Development of infrastructure and residential space
Planned expansion of city limits
Development of Satellite Towns
Upfront infrastructure development around major cities a pre-requisite for planned
development of
satellite towns
Mumbai and NCR have successfully developed satellite towns, which other cities can
emulate
Role of PPP in Affordable HousingRole of PPP in Affordable Housing
• Connectivity & Infrastructure
17
18. Access to lower cost of capital
Relaxation of ECB norms for housing companies
Increase in income tax ceiling on housing loans will reduce
post tax cost of capital for borrowed
Increase support to State Governments to engage in PPP
projects
Housing as a priority sector
Increase current limits on interest subsidies from INR 2 million
to INR 4 million
Role of PPP in Affordable HousingRole of PPP in Affordable Housing
• Credit delivery & Risk
18
19. Profitability of developers and housing finance companies
80 IB benefits for all approved affordable housing projects and
developers.
Extension of 80 IB benefits for housing finance companies lending to
LIG and EWS lenders.
Special focus on EWS segment
Significantly higher Government involvement and subsidiaries are
required to provide equitable housing for EWS segment.
Innovative cross-subsidization schemes, extensive subsidies and suitable
credit delivery mechanisms needed to address the specific challenges of
EWS segment.
Role of PPP in Affordable HousingRole of PPP in Affordable Housing
• Others
19
21. High Street in Tier II & III CitiesHigh Street in Tier II & III Cities
(Including Fun, Shopping, Entertainment and Food Zone)(Including Fun, Shopping, Entertainment and Food Zone)
Ideal Location: Tier II & Tier III cities,
◦ Population: 2-5Lacs
◦ Identified location should be In the vicinity of population
◦ Within 5 kms of the City periphery, and/ or within city premises
◦ Preferably on the link road (highway connectivity) of two/ three towns/
cities
◦ Preferable location - A destination for Religious Tourism, and/ or Medical
set ups, and/ or Educational set ups, and/ or Industrial set up.
Land Cost: Max. 50 Lacs per acre
Land Parcel : 5 - 7 Acres
Total development: 1.75Lacsq.ft. - 2 Lac sq. ft.
Land Use: Mix Use Development
Architecture: Horizontal Structure, with lots of Greens, and open parking
21
22. UEPs-UEPs- Unique Emotional PropositionUnique Emotional Proposition
◦ Multiplex
2-3 screen Multiplex of 100-150 seats
50 seater 3-D to 7-D Screen
◦ Theme Park/ Entertainment Zone
Kid’s Gaming Zone/ Rides
Water Park
◦ Food Court
Kiosks serving a mix of World Cuisines
Fine Dining/ Lounge
◦ Hotel
Should project ‘MICE’ concept
Approx. 40 Room Budget Hotel
Marriage/ Party Lawn
◦ Nursing Home
◦ Festivals of India
22
31. CMBS TransactionsCMBS Transactions
What are Commercial Mortgage Backed Securities (CMBS)?
CMBS are debt securities using commercial assets as collaterals
Incomes generated from the property assets are used to service debt
obligations
CMBS structures have no or limited amortisation during the tenure
thus relying on full/partial refinancing
Rating is enhanced using the structural features such as maintenance
of DSRA, pledge of shares, cushion between indicative and final legal
maturity, etc
31
33. Real Estate Investment TrustReal Estate Investment Trust
Vehicle for owning and operating income producing real
estate assets
Structured like a Mutual Fund
Utilises pooled capital to deploy across real assets
Portfolio includes commercial office space, shopping
malls, warehouses and mortgages
Established market participant in the developed
economies
33
34. Salient Points of SEBI (REIT) Regulations 12Salient Points of SEBI (REIT) Regulations 12
Sponsors Raising Funds InvestmentsSponsors Raising Funds Investments
Sponsors:
–Maximum three sponsors collectively holding minimum of 25% of the
REIT units for first three years and 15% thereafter
–Minimum of five years of experience in real estate industry on an
individual basis
–Minimum net worth of Rs. 20 crore on a consolidated basis
Raising Funds:
–Initial fund raising through an initial offer, thereafter through follow-on
offer, rights issue, QIP
–Minimum initial offer size of Rs. 250 crore with at-least 25% public float
–Minimum value of REIT assets of Rs. 500 crore
34
35. Salient Points of SEBI (REIT) Regulations 12Salient Points of SEBI (REIT) Regulations 12
Sponsors Raising Funds InvestmentsSponsors Raising Funds Investments
Investments:
–Minimum 80% in completed and revenue generating properties
–Balance in other assets like developmental properties, MBS,
Debt/Equity of real estate entities, government securities & money
market instruments
–Maximum 10% in developmental properties
–Shall invest in at least 2 projects with not more than 60% of value of
assets invested in one project
Others:
–Minimum 90% of income to be distributed on a half yearly basis
–Assets to be valued on an annual basis with a six monthly update
–NAV to be declared at least twice in a year
–Borrowings and deferred payments at a consolidated level shall not
exceed 49%; in case borrowings exceed 25%, credit rating shall be
required
35
36. Structure of a REITStructure of a REIT
36
Investors
(Minimum subscription size
of Rs. 2 Lakh)
REIT
Trustee
(Hold assets in the name
of the REIT)
Sponsor(s)
(Holds minimum 25%
units of REIT to start with
Real Estate Assets (SPVs/Properties)
(Minimum asset size of Rs. 500 crore;
80% of investment in operational
revenue generating assets)
Income
(Return/Dividend)
Pooled Capital
Minimum
commitment
Monitoring
Income
(Return/Dividend)
Capital
Income (Rental,
Capital Gains)
38. NCDs are fixed income debt instruments issued by a company wherein
a company agrees to pay a fixed rate of interest on your investment for
a specified period in order to raise money from market for business
purposes. As the name suggests, these debentures cannot be converted
into shares of issuing company unlike convertible debentures. Interest
on NCDs is paid at different time period like quarterly, semi-annually
or annually. They also have an option of cumulative interest in which
case interest is cumulated & paid on maturity
An NCD can be secured or unsecured. Secured NCDs are backed by
the issuer company's assets to fulfill the debt obligation unlike
unsecured NCDs. The NCD issues are rated by credit rating agencies
like CRISIL, ICRA, FITCH, and CARE to ensure the company's ability to
service the debt on time & lower default risk.
38
Non Convertible DebentureNon Convertible Debenture
39. What is a Debenture?What is a Debenture?
39
• A Debenture is a type of a debt instrument used for asset allocation
which helps diversification of your portfolio
TType Of Debentures?Debentures?
• Convertible Debenture Convertible debentures are unsecured bonds
that can be converted to company equity or stock.
•Non-convertible Debentures (NCD) Nonconvertible debentures are
unsecured bonds that cannot be converted to company equity or stock.
40. Client profile to be prepared for being in International Trade
Owner of the Property (Converted land) to be inducted as partner/director in the firm/
company
Recognised International trade consultant to be appointed by the firm/ company to be as
consultant
The complete profile to be given to the bankers for processing of limits.
Bankers would sanction limits to the tune of 80 to 85 percent and rest to be arranged as
Cash margin
On approval of limits, the company/ firm will get the LC usance issued in favour of the
exporter identified by us.
On issuing of LC usance, goods will be exported from foreign destination to the firm/
company in India. The firm/ company in India would in turn sell the same to a pre-
identified customer in India on immediate cash basis (High Sea Sale).
At the end of 180 days, another LC would be opened, issued and payment received in
cash and would be used to settle the first LC. All pre-agreed cost i.e. Financing charges
will have to be paid to the respective parties (i.e. Exporter, bankers etc) by the client.
This would be rolled over every 6 months till the time the client wishes and wants to
make use of the money. Once the client is in a position to return the principal, the same
would be paid to the bank and property released.
40
Letter of CreditLetter of Credit
41. Payment of financing charges at half yearly intervals
No principal repayment till the tenure of roll over
All cost like LC discounting charges, Bank charges and exporters
margin amounting to less than 13 percent per annum
Funding against converted land being a non bankable asset, can be used
to raise the funds through this model.
41
Letter of CreditLetter of Credit