Reserve Bank of India's (RBI's) Notification to All Scheduled Commercial Banks about 20:80 Schemes - a.k.a. - Advance Disbursement Facility (ADF) - No EMI (Pre-EMI) till Possession:
|Reserve Bank Of India (RBI)|
Collapsing Rupee, Collapsing Economy & RBI:
Yesterday outgoing Reserve Bank of India Governor D Subbarao did his last and best effort to save India from impending sub-prime crisis. RBI came out with a notification curbing 20:80 scheme.
Why RBI is aginst 20:80 scheme? Because, RBI knows the modus operandi of global financial firms - the criminal enterprises - which are on the verge of taking control of Indian Economy. To takeover any economy, these criminal enterprises have always crashed real estate market to trigger economic & financial crises.
You know how these criminal enterprises crash the real estate market? By selling homes to those who can not afford to buy! When these property buyers can not pay their EMIs, banking system collapses like a tower of cards and these sub-prime crisis trigger economic & financial crisis.
By this notification against 'Innovative Housing Loan Products' - upfront disbursal of housing loans - 20:80 Scheme - ADF - No EMI till Possession - RBI is trying to prevent the banks from selling homes to those people who can not afford to pay their EMIs and create the sub-prime crisis which will fully & finally collapse of Indian economy.
Builders & Politicians - Pimps of Global Financial Firms:
Last time, in the sub prime crisis of 2008 - world financial crisis - because of the strong RBI - Indian economy somehow managed to survive. But, now, in 2013, situation is different.
Indian rupee is collapsing. India's current account deficit - gap between import & export - is high. GDP growth has come down to 4 per cent. Government's spending on infrastructural development is not much. Government spending on ponzi social welfare schemes for the rural & poor people is high - which is not increasing productivity or GDP growth. but fueling inflation. Plus, now, Indian politicians & builders have become pimps of these criminal enterprises - global financial firms.
Today, Indian politicians, pimps of global financial firms, have already challenged the autonomy and accountability of Reserve Bank of India. The outgoing governor knows that if these pimps became successful in weakening the RBI, it would be difficult to avoid crash of Indian real estate market.
So, the only way to stop these global financial firms from creating sub-prime crisis is -
preventing their pimps - the builders - from selling homes to those people who can not afford to buy.
With this notification RBI insists on linking disbursement of home loan to stage of construction.
RBI says no 'innovative' housing loan products.
RBI says no 'No Pre-EMI till Possession' schemes.
RBI says no 'Pay Only 10% Now - Balance on Possesion' schemes.
RBI says book a home only if you can afford to pay Pre-EMI plus rent till you get the possession.
What say you?
Isn't the risk not limited to booking a flat?
Considering the current state of world economy,
do you think that you will remain employed for the next 20 years and would be able to pay EMI?
Please, share your views in the comments.
What happens if a lender takes over a housing project?
Last month, the State Bank of India took over a housing project in Kolkata because the developer had defaulted on repayment of dues to the tune of Rs 176 crore. The Teen Kanya project was promoted by the Bengal Shelter Housing Development, a joint venture in which the state housing board has 49% stake. Therefore, its repossession by the SBI % has come as a shock for the 400-odd families that have invested in the project.
Most of the buyers had put money in the project because the state housing board was involved. The project is only half complete and the investors are now contemplating legal action to safeguard their investments.
The incident brings into focus the RBI's decision to stop builders from offering 80:20 schemes. Under these schemes, the buyer services only 20% of the loan for the property while the developer pays the interest on the balance till the property is ready. The RBI warned that if the developer defaults on the interest payment, the buyer would suffer because the loan was in his name.
What are the options available to a buyer if a lender repossesses a property due to default in payment? Legal experts and housing professionals contend that the lender does have first right over the project. Let us look at the issues involved. Read More
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