Chennai, Feb. 7 -- The Indian REITs Association (IRA) on Friday welcomed the Reserve Bank of India's (RBI) decision to allow banks to lend directly to Real Estate Investment Trusts (REITs).
The decision of the RBI's Monetary Policy Committee was announced by RBI Governor Sanjay Malhotra.
This landmark move strengthens the financial framework for REITs and supports their long-term growth, IRA said.
Direct access to bank lending provides REITs with a stable, long-term source of funding, expanding the avenues of fund raising for these instruments. This is particularly important for an asset class built on long-duration, income-generating real estate.
According to IRA, the ability to borrow at the REIT level is also expected to result in mo...