On January 08, 2020 the State Bank of India(SBI) has announced a new scheme named Residential Builder Finance with Buyer Guarantee (RBBG). This new scheme’s purpose is to safeguard home buyers financially by issuing guarantee for completion of projects to customers availing SBI Home Loans. The ongoing home projects of SBI customers will be financed by the bank itself.Home price range: Housing segment with home price of up to Rs. 2.50 crores in 10 cities will be focused in the RBBG scheme initially.
Residential builder finance with buyer guarantee:
i.Builders loan availability: Under the scheme, all reputed builders fulfilling the bank criteria can avail loan ranging between Rs 50 crores and Rs 400 crores. The criteria also include star rating and CIBIL (Credit Information Bureau (India) Limited) score.
ii.RERA act: The buyer guarantee will be available for RERA (Real Estate Regulatory Act, 2016) registered projects and a project will be considered stuck after it crosses the RERA deadline.
iii.Amount refund: The lender would refund the entire principal amount in case 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.
SBI and Sunteck Realty Limited (SRL) signed MoU:
On January 08,2020 SBI and real estate development company Sunteck Realty Limited (SRL) signed a Memorandum of Understanding (MoU) to boost the residential housing sector under the public sector lender’s RBBG scheme with tagine “Sapna Aapka – Bharosa SBI Ka” to the home buyers. Under this MoU three projects will be constructed in the Mumbai Metropolitan Region of Maharashtra.
- Home buyers can choose their dream homes from SBI approved projects in 10 cities enhancing trust and transparency.
About State Bank of India(SBI):
Formation- 1 July 1955.
Chairperson- Rajnish Kumar.
Tagline- The banker to every Indian; With you- all the way; A bank of the common man; Pure banking, nothing else.