{"id":2130,"date":"2020-08-29T14:04:01","date_gmt":"2020-08-29T08:34:01","guid":{"rendered":"https:\/\/www.propstack.com\/news\/?p=2130"},"modified":"2020-08-29T14:04:01","modified_gmt":"2020-08-29T08:34:01","slug":"security-cover","status":"publish","type":"post","link":"https:\/\/www.propstack.com\/news\/security-cover\/","title":{"rendered":"Lenders seek higher security cover for funding real estate developers"},"content":{"rendered":"

Our analysis of security cover of developer loans shows that lenders are seeking higher security from developers in the backdrop of rising risk.<\/p>\n

Some key takeaways:<\/p>\n

    \n
  1. Security cover has been rising since 2017 when it was 1.55 X to 1.66 X in 2020. This is inline with the rising risk associated with the sector.<\/li>\n
  2. The security cover was large loans (>500 cr) is 1.48 X which is a 20% discount to average security cover of 0-50 cr loans. The reason for this could be that large loans are taken by larger developers and the risk weightage for larger developers may be lower compared to smaller developers.<\/li>\n
  3. For high interest rates (>15%) the security cover is 1.86 X which is a premium of 30%+ over loans at interest rates of <10% (which are largely lease rental discounting loans).<\/li>\n<\/ol>\n

    \"Security<\/p>\n

    In case you are interested in knowing details of all developer loans, please register here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Our analysis of security cover of developer loans shows that lenders are seeking higher security from developers in the backdrop of rising risk. Some key takeaways: Security cover has been rising since 2017 when it was 1.55 X to 1.66 X in 2020. This is inline with the rising risk associated with the sector. The\u2026 Read More »<\/a><\/span><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[363,177,365,364],"class_list":["post-2130","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-developer-loans","tag-insights","tag-security-collateral","tag-security-cover"],"_links":{"self":[{"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/posts\/2130","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/comments?post=2130"}],"version-history":[{"count":1,"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/posts\/2130\/revisions"}],"predecessor-version":[{"id":2132,"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/posts\/2130\/revisions\/2132"}],"wp:attachment":[{"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/media?parent=2130"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/categories?post=2130"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/tags?post=2130"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}