Builders Affected by RBI's New Loan Policy On Under-Construction Flats

In a tight move that will affect the builders, RBI has barred the banks from providing home loans for under-construction flats. Currently they are provided by the banks at the 80:20 ratio.

These loans are given under mortgage systems and not under construction financing.

As construction loans involve greater risks, the banks have to provide greater provisions to the Central Bank making it a tougher task. On the other end, home loans are easier as it requires minimal provisions in comparison to the former loans.

Home loans, being cheaper than the construction loans, builders too prefer it. For them too, home loans are more beneficial as construction loans are charged at higher rates.

With the new RBI policy, the builders will be affected severely forcing them to take out high-rated construction loans for completing their projects.

Sources say that in Mumbai, one fourth of the home loans are provided under the 80:20 scheme.

A bank official said that construction involves higher risk and so they have to convert this risk into profit. He added that the builders are not to be offered loans at the rate which an individual is given home loans.

Builders Affected by RBI's New Loan Policy On Under-Construction Flats

In a tight move that will affect the builders, RBI has barred the banks from providing home loans for under-construction flats. Currently they are provided by the banks at the 80:20 ratio.

These loans are given under mortgage systems and not under construction financing.

As construction loans involve greater risks, the banks have to provide greater provisions to the Central Bank making it a tougher task. On the other end, home loans are easier as it requires minimal provisions in comparison to the former loans.

Home loans, being cheaper than the construction loans, builders too prefer it. For them too, home loans are more beneficial as construction loans are charged at higher rates.

With the new RBI policy, the builders will be affected severely forcing them to take out high-rated construction loans for completing their projects.

Sources say that in Mumbai, one fourth of the home loans are provided under the 80:20 scheme.

A bank official said that construction involves higher risk and so they have to convert this risk into profit. He added that the builders are not to be offered loans at the rate which an individual is given home loans.

Youth hacked to death, mother held

KANNUR: A youth was hacked to death during a dispute that broke out in connection with the construction of a shed. The police arrested his mother identified as Bifathu. The dead has been identified as Thajudeen (27) of A K House, Kunhimangalam. The fight broke out between Bifathu and her husband over the construction of the shed. In between the fight, the woman tried to hack her husband. The youth sustained injuries when he tried to stop it. A case has been registered.

Youth hacked to death, mother held

KANNUR: A youth was hacked to death during a dispute that broke out in connection with the construction of a shed. The police arrested his mother identified as Bifathu. The dead has been identified as Thajudeen (27) of A K House, Kunhimangalam. The fight broke out between Bifathu and her husband over the construction of the shed. In between the fight, the woman tried to hack her husband. The youth sustained injuries when he tried to stop it. A case has been registered.

Mons Joseph’s son dies

KOTTAYAM: Son of Kaduthuruthy MLA and former minister Mons Joseph passed away on Sunday. He has been identified as Emmanuel aged 11.

Mons Joseph’s son dies

KOTTAYAM: Son of Kaduthuruthy MLA and former minister Mons Joseph passed away on Sunday. He has been identified as Emmanuel aged 11.

UP communal clashes: Death toll rises to 12

Lucknow: The deaths in Saturday's communal clashes in Muzaffarnagar district in Uttar Pradesh rose to 12 Sunday, police said. Fearing escalation of the clashes, the army has been sent to the violence-hit areas, officials said.An earlier report, quoting Muzaffarnagar district administration officials, said the toll was 14.On Saturday, at least six people, including a television journalist and a local photographer, were killed when two communities clashed after a "mahapanchayat" in Muzaffarnagar.Mob of people pelted stones and exchanged fire. Around 40 people injured in the clashes were admitted to hospitals.

Violence started when some people pelted stones at a bus carrying people to the "mahapanchayat", where elders of two religious groups were meeting to sort out the simmering tension between the two communities ever since three youngsters were killed Aug 27 over a case of harassment. Eight columns of the army, requisitioned from Bareilly, were sent to the violence-hit areas Saturday night after the violence spread to rural areas. The situation was tense but under control, Additional Director General of Police (Law and Order) Arun Kumar told IANS Sunday. Officials said four senior police officials were sent by the state government as "officers on special duty" to Muzaffarnagar and neighbouring districts, including Shamli, where tension has been reported.

Following the violence, curfew was imposed in the area Saturday night, and police have urged people not to step out of their houses in violation of the restrictions, and have warned trouble-makers not to further vitiate the atmosphere. Director General of Police Devraj Nagar is monitoring the situation from Lucknow, and Chief Minister Akhilesh Yadav is learnt to have given a dressing down to senior officials. "When tension was simmering for the last 10 days, the chief minister is angry as to why the violence, despite anticipation, was not contained in time," a close aide of Akhilesh Yadav told IANS Sunday. With the monsoon session of the state assembly just a week away, Akhilesh Yadav is keen to end the hostilities at the earliest, the aide said.

Opposition parties, including the Bharatiya Janata Party (BJP), Congress and the Rashtriya Lok Dal (RLD), criticised the government, saying it has failed in maintaining communal harmony, peace, law and order in the state. RLD state president Munna Singh Chauhan said the government has forfeited the right to continue in office. BJP state spokesman Vijay Bahadur Pathak told IANS that the fact that the army had to be called in to contain violence in Muzaffarnagar has proved beyond doubt the "failure of the Samajwadi Party government in the state". State Congress president Nirmal Khatri condoled the loss of life and said the government had failed to protect the interests and safety of the people in the state.

Akhilesh Yadav, meanwhile, said police have been pressed into service, and urged people not to be swayed by rumours. "I urge people of the state to maintain peace, communal harmony and warn mischief makers," he told reporters on the sidelines of a meeting in the state capital. 

UP communal clashes: Death toll rises to 12

Lucknow: The deaths in Saturday's communal clashes in Muzaffarnagar district in Uttar Pradesh rose to 12 Sunday, police said. Fearing escalation of the clashes, the army has been sent to the violence-hit areas, officials said.An earlier report, quoting Muzaffarnagar district administration officials, said the toll was 14.On Saturday, at least six people, including a television journalist and a local photographer, were killed when two communities clashed after a "mahapanchayat" in Muzaffarnagar.Mob of people pelted stones and exchanged fire. Around 40 people injured in the clashes were admitted to hospitals.

Violence started when some people pelted stones at a bus carrying people to the "mahapanchayat", where elders of two religious groups were meeting to sort out the simmering tension between the two communities ever since three youngsters were killed Aug 27 over a case of harassment. Eight columns of the army, requisitioned from Bareilly, were sent to the violence-hit areas Saturday night after the violence spread to rural areas. The situation was tense but under control, Additional Director General of Police (Law and Order) Arun Kumar told IANS Sunday. Officials said four senior police officials were sent by the state government as "officers on special duty" to Muzaffarnagar and neighbouring districts, including Shamli, where tension has been reported.

Following the violence, curfew was imposed in the area Saturday night, and police have urged people not to step out of their houses in violation of the restrictions, and have warned trouble-makers not to further vitiate the atmosphere. Director General of Police Devraj Nagar is monitoring the situation from Lucknow, and Chief Minister Akhilesh Yadav is learnt to have given a dressing down to senior officials. "When tension was simmering for the last 10 days, the chief minister is angry as to why the violence, despite anticipation, was not contained in time," a close aide of Akhilesh Yadav told IANS Sunday. With the monsoon session of the state assembly just a week away, Akhilesh Yadav is keen to end the hostilities at the earliest, the aide said.

Opposition parties, including the Bharatiya Janata Party (BJP), Congress and the Rashtriya Lok Dal (RLD), criticised the government, saying it has failed in maintaining communal harmony, peace, law and order in the state. RLD state president Munna Singh Chauhan said the government has forfeited the right to continue in office. BJP state spokesman Vijay Bahadur Pathak told IANS that the fact that the army had to be called in to contain violence in Muzaffarnagar has proved beyond doubt the "failure of the Samajwadi Party government in the state". State Congress president Nirmal Khatri condoled the loss of life and said the government had failed to protect the interests and safety of the people in the state.

Akhilesh Yadav, meanwhile, said police have been pressed into service, and urged people not to be swayed by rumours. "I urge people of the state to maintain peace, communal harmony and warn mischief makers," he told reporters on the sidelines of a meeting in the state capital. 

Army moved into Meerut, Shamli

Lucknow: On the Uttar Pradesh government's call for help, army troops were Sunday moved in to Meerut and Shamli as a precautionary measure, after communal clashes rocked the neighbouring Muzaffarnagar district Saturday, an army official said.Central Army Command public relations officer Basant Kumar B. Pande said that a request from the state government for a column of army for Shamli was received Sunday morning while another one for an army column for Meerut was received in the afternoon."Requisition for army assistance in Meerut was received in the afternoon and one column is being located there," he informed.Meanwhile, the Muzaffarnagar district administration Sunday battled to contain communal violence that erupted Saturday and left 12, including a TV journalist, dead.An army official said eight columns of the army moved into Muzzaffarnagar at the request of the district authorities Saturday.

Eight army columns from Meerut under Brigadier Jagdeep reached Muzaffarnagar Sunday morning.After holding meetings with the district authorities and assessing the situation, the columns were positioned in the sensitive areas of the city. They also staged a flag march.Officials in the state home department said the situation was "tense" but under control.

Army moved into Meerut, Shamli

Lucknow: On the Uttar Pradesh government's call for help, army troops were Sunday moved in to Meerut and Shamli as a precautionary measure, after communal clashes rocked the neighbouring Muzaffarnagar district Saturday, an army official said.Central Army Command public relations officer Basant Kumar B. Pande said that a request from the state government for a column of army for Shamli was received Sunday morning while another one for an army column for Meerut was received in the afternoon."Requisition for army assistance in Meerut was received in the afternoon and one column is being located there," he informed.Meanwhile, the Muzaffarnagar district administration Sunday battled to contain communal violence that erupted Saturday and left 12, including a TV journalist, dead.An army official said eight columns of the army moved into Muzzaffarnagar at the request of the district authorities Saturday.

Eight army columns from Meerut under Brigadier Jagdeep reached Muzaffarnagar Sunday morning.After holding meetings with the district authorities and assessing the situation, the columns were positioned in the sensitive areas of the city. They also staged a flag march.Officials in the state home department said the situation was "tense" but under control.