Banks have stiffened their regulations for giving out loans to real estate sector following a fall in the prices of all kinds of properties and subsequent revaluation of the construction projects.
For lending to a property development project, banks now seek collateral up to 150 percent of the loan amount, which will be treated as security deposit from the borrower. In addition to that, banks will consider only 40 to 50 of the project cost for lending purposes in a bid to seek more equity participation from the developers.
There has also been a fall in the rate of interest for the past three months and the current lending rate for real estate developers hovers around 12 to 15 percent. | 
