# Fitch warns of liquidity crisis for developers on NBFC woes 2026-08-08T00:46:01+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet Indian real-estate developers face rising liquidity risk as non-bank financial institutions pull back from lending, Fitch Ratings said on Friday. Developers relying on NBFC refinancing, especially those with weak financials, will be hit hardest. Large developers' unencumbered assets may not help because NBFIs are cutting exposure to big borrowers, pushing firms toward costlier private equity. Banks have also reduced lending to real estate, with exposure falling to 2.3 per cent of loans in FY19 from 2.8 per cent in FY16. High-end project developers face higher risk as sales slow. Affordable housing developers may still access some credit due to healthy pre-sales and government incentives. Fitch said the government's July guarantee on securitised assets may ease short-term pressure but lacks clarity and mainly benefits large NBFIs. ## Coverage - economictimes.indiatimes.com Tags: bank lending, Fitch, liquidity, NBFC, real estate Canonical: https://indianopinion.org/fitch-warns-of-liquidity-crisis-for-developers-on-nbfc-woes/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/fitch-warns-of-liquidity-crisis-for-developers-on-nbfc-woes/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.