Residential Builder Finance with Buyer Guarantee’ scheme

A scheme has been launched for homebuyers by State Bank of India (SBI), under which the country’s largest public lender is offering a guarantee scheme of completion of a residential project within a deadline.

SBI’s ‘Residential Builder Finance with Buyer Guarantee scheme’ can be availed for any housing project where the maximum price of a single unit is Rs 2.5 crore.

Under the scheme, developers will also be able to avail of a loan between Rs 50 crore to Rs 400 crore after fulfilling due diligence.

SBI’s new buyer guarantee scheme: Key Facts

 The buyer guarantee scheme will focus on affordable housing projects worth up to Rs 2.5 crore in 10 cities initially.

 Under the scheme, the SBI will refund the entire principal amount if the home developer fails to deliver the project within the assured deadline.

 The bank will issue the guarantee until the housing project gets the occupation certificate (OC). The refund scheme will only be valid until then.

• Further, the guarantee will only be available for RERA registered projects and they will be considered stuck only after they cross the RERA deadline.

 The developer fulfilling due diligence by the bank will also be able to avail loans between Rs 50 crores to Rs 400 crores under the scheme.

Source: Jagran Josh

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