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