SBI Home Loan: In order to give a boost to the home loan segment, country's largest public-sector lender State Bank of India (SBI) has announced a residential builder finance scheme with its ‘guarantee’ under which the lender would refund the entire principal amount if the developer fails to deliver the project within the assured deadline. The refund scheme will be valid till the occupation certificate is procured by the builder. The main aim of the scheme is to safeguard the home buyers financially by issuing a guarantee for completion of projects to customers availing SBI Home Loans.
How does the scheme work:
The ‘Residential Builder Finance with Buyer guarantee scheme’ (RBBG) can be availed for projects where the maximum home price is upto Rs 2.5 crores. The logic of covering such a high number of homes with a price up to Rs 2.5 crore shows that the scheme would initially be rolled out in top cities. Developers fulfilling due diligence by the bank can also avail a loan between Rs 50 crores to Rs 400 crores under the scheme.
Old rates VS new rates:
The new homebuyers will get loans at an interest rate starting from 7.90% p.a. (previously at 8.15% p.a.).
To boost real estate sector:
Speaking on the SBI initiative, SBI Chairman Rajnish Kumar said, “We believe that RBBG will build confidence among home buyers by securing their hard-earned money and at the same time will boost under-stress real estate sector. This product is yet another effort by SBI to make affordable housing conveniently accessible to individuals with dreams of owning their desired home. Based on the response from both builders and customers, we may consider extending this product to other parts of the country.”
Launched with a tag line “Sapna Aapka Bharosa SBI Ka”, Residential Builder Finance with Buyer Guarantee will offer home buyers to choose their dream home from SBI approved projects in 7 cities with complete trust and transparency.
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