N.Panneer selvam availed home loan from a public sector bank. The economic downturn and job uncertainties compelled him to rethink his home loan repayment plans. He wanted to restructure it and made a request to the bank. To his surprise, the bank agreed to add five years to his repayment period.

This reduced his Equated Monthly Installments (EMI) and made it possible for him to pay. “I am relieved," says the visibly happy Pannerselvam. "The restructuring process of housing loans is the most important thing happening now. We are doing it vigorously taking a sympathetic view of our customers position," said J.Chandrasekaran, Chief General Manager, Local Head Office, State Bank of India,

The State Bank of India has carried out rephrasing or restructuring of more than 12,000 home loans of its customers in the past two weeks in Tamil Nadu. "Our bank has done rephrasing of loans for more than 1,500 home loan customers in and around the city in the past 15 days," said Mr.Chandrasekaran. ...

A clear picture of the housing sector is yet to emerge after the rate cuts and fall in property prices. But banks are more cautious in sanctioning loans, says SHYAMA RAJAGOPAL.

As the property and real estate boom has tapered off, riding on global sentiments, the banks experience a lower demand for housing loans, though interest rates have come down of late — in some cases to single digits. It is a time of uncertainty those looking for a house of their own as well as the banks.

When assessing the creditworthiness of loan applicants, banks are cautious, as they have to factor in downsizing and salary cuts, especially in the information technology sector....

Banks have played a significant role in the growth of the real estate sector in Kozhikode city.

However, the slowdown in the Indian economy recently has forced commercial and nationalized banks to tread carefully in funding housing projects.

Stricter norms have been adopted in disbursement of loans. Most banks are hesitant to lend as the memories of the sub prime crisis in the U.S. linger. They do not want to increase non-performing assets by offering loans to people having no repaying capacity....

Amid the continuing gloom over the economy, including in the real estate sector, has come some good news for property developers as for with other sectors in the economy, including telecom and the media.

A substantial revision of the Foreign Direct Investment (FDI) policy of the government announced this week in New Delhi holds out some cheer, though experts believe its influence on the now-stumbling property business will unfold only over a long period.

The FDI policy revision has been aimed at making future FDI processes simple and transparent. It was proposed by the Department of Industrial Policy and Promotion and considered by the Group of Ministers. Finer details of the new guidelines are awaited over the next two weeks....

The allocations for flagship programmes in the interim budget will help develop rural and urban infrastructure.

The Interim Union Budget presented in Parliament last week is expected to give an impetus to development of rural and urban infrastructure. Work in rural areas is expected to benefit from the higher allocation for the flagship National Rural Employment Guarantee Programme. In urban areas, the higher allocation for the Jawaharlal Nehru National Urban Renewal Mission will help. The seven-year mission is being implemented in cities across the country, including Kochi and Thiruvananthapuram.

As the impact of the worldwide economic recession unfolds, the housing sector is in focus. Several big-time builders in metros slash prices, while smaller cities such as Kochi see fewer new projects. ...