Home buyers availing loan from SBI will get refund of the principal amount under the Residential Builder Finance with Buyer Guarantee scheme, incase, the builder delays project completion from the announced date.
State Bank of India has launched the Residential Builder Finance with Buyer Guarantee (RBBG) scheme to safeguard home buyer interest against ongoing projects incase the developer fails to complete the project in time. The Bank will protect the buyer financially by issuing guarantee for completion of projects to customers availing SBI Home Loans.
‘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’ informed SBI Chairman Rajnish Kumar.
With the announced scheme, customers will be able to secure their investment in the ongoing home projects financed by the bank itself.
Speaking on the new SBI scheme, Anuj Puri, Chairman of Anarock Property Consultants informed ‘SBI’s latest and highly differentiated home loan scheme is an extremely good move and positive for the residential real estate sector as a whole. It will certainly help attract homebuyers’.
RBBG will focus on affordable housing segment with home price of upto Rs. 2.50 crore in seven Indian geographies initially. Residential Builder Finance with Buyer Guarantee will offer home buyers to choose their dream home from SBI approved projects in 10 cities with complete trust and transparency.
‘Based on the response from both builders and customers, we may consider extending this product to other parts of the country’ added Mr. Kumar.
Under this product, all reputed builders fulfilling the prescribed criteria by the bank can avail loan between Rs. 50 crore to Rs. 400 crore. Criteria includes Star rating and CIBIL score.
‘To mitigate the risk of having to issue refunds, it will also keep a regular check on the progress of the project and see to it that it is completed on time. This will eventually give major assurance to all homebuyers who will opt for loans under this scheme from the SBI, and help in boosting their confidence’ added Mr. Puri.