New Delhi In a bid to spur real estate players to build homes for the low-income population, the proposal to allow them to access end-use linked external commercial borrowings (ECBs) for low-cost housing will soon be implemented. According to a senior government official, “the Reserve Bank of India (RBI) is going to notify the scheme in a few days”.

The scheme would impose stiff end-use norms to ensure that overseas funds are not used by developers for other purposes. ECBs are much cheaper than local debt due to near zero interest rates in many developed countries. But the actual interest rate would depend upon the lenders’ assessment of the borrowers, economic viability of projects, expected returns and the credit rating of the borrower.