A week after the NCR Planning Board cleared Greater Noida's master plan, banks and non-banking financial companies (NBFCs) have hinted they will resume lending in both cases of loans – home loans to buyers and project loans to builders – in Noida Extension within a week.
RK Dabral, assistant general manager (housing loans) at Corporation Bank in Delhi, said, "We would most definitely resume lending right away – be it fresh loans or stuck installments of loans already sanctioned. But we will take all precautions."
After the title of the land became disputed about a year ago with farmers seeking their land back and courts obliging them in a couple of cases, banks stopped sanctioning fresh loans and held back installments of loans already sanctioned.
Even when the Allahabad High Court in October last year upheld land acquisition, lending did not resume as the court also stalled projects because Greater Noida's master plan was not cleared by the NCR Planning Board.
Dinesh Vig, who oversees housing loans at India Bulls, said, "There's no dispute now. Construction has resumed. From next week, we would start lending to both builders and homebuyers."
RK Arora of realty firm Supertech, said, "The Greater Noida authority has sent us (the builders) a letter allowing us to start construction. We have sent copies of this letter to several banks and NBFCs — such as Corporation Bank, Bank of India, Oriental Bank of Commerce and India Bulls Financial Services — asking them to resume lending. They have all given their nod (for resumption of lending)."
These banks and NBFCs have told us to ask for payment of installments from those who have booked flats."
Greater Noida authority chief executive officer Rama Raman said, "We will soon hold a meeting with all major banks and request them to start disbursing loans to buyers. There are no hurdles now."
Public sector banks have sanctioned Rs 2,166.2 crore as home loans and other construction loans for Noida Extension realty projects as on March 31, 2010.