chennai the reserve bank of indias notification advising banks against upfront disbursal of loans without considering the stage of construction has been issued in order to prevent indiscriminate lending under such schemes by banks the increasing popularity of the 2080 scheme during the past one year has prompted rbi to sound out an advisory to banks ratings agency crisil said in a recent report under the notification the central bank has particularly advised banks against upfront disbursal of a significant portion of the loan amount to the developer without linking the same to the stages of construction typically construction finance for real estate projects carries an interest rate of 15 to 18 as it involves high risk under the 2080 schemes on the other hand developers receive funds at the same rate as retail home loans ie 1011 crisil said moreover rbi has also emphasized that banks must ensure that the buyer is made aware of all risks and liabilities undertaken by himher under such schemes notwithstanding the notification crisils interactions with market participants have revealed that the move is unlikely to have any major impact on developers as very few of them have been given upfront disbursement of funds under such schemes