Finance
EnglishRBI lets banks lend directly to REITs for easy funding!
The Reserve Bank of India just dropped a bombshell! They’re letting banks lend directly to real estate investment trusts (REITs). This means REITs can grab funds at cheaper rates to expand their retail and office spaces. Previously, they had to jump through hoops with special vehicles. Now, they can flex their financial muscles, but they still need to play by some rules.
few days ago | Sanket Koul
Quick rundown
1.RBI's new proposal allows banks to lend directly to REITs.
2.Direct bank lending offers REITs a stable funding source.
3.REITs can now diversify their funding base beyond capital markets.
4.India has five publicly listed REITs managing $27 billion in assets.
5.Regulatory safeguards are essential for the success of this move.
