REITs can now borrow directly from banks: What it means
Big update: The RBI has proposed to permit banks to give direct loans to listed Real Estate Investment Trusts (REITs), instead of going through complicated routes like special vehicles or the capital markets.
This move follows a regulatory review and puts REITs on par with infrastructure trusts when it comes to borrowing.
Why this matters
This change could mean cheaper, longer-term loans for REITs—one senior banking official suggested lending rates could be around 7-8%, compared with 10-12% in the broader real estate sector.
That means more money for them to grow and invest in office or retail spaces, and potentially higher dividends for investors.
As Vimal Nadar from Colliers India put it, this is likely to boost cash flows and returns.
The Indian REITs Association even called it "landmark"—so if you're following real estate or thinking about investing, this makes things a lot more interesting.