Potential homebuyers who are staying away from under-construction properties may breathe a sigh of relief as SBI is bringing to them ‘get home or money back’ guarantee scheme.
To bring some trust among the buyers, SBI has launched the Residential Builder Finance with Buyer Guarantee (RBBG) scheme. The scheme will safeguard homebuyers financially by issuing guarantee for completion of projects to customers availing SBI Home Loans. Under the scheme, buyers will now be able to secure their investment in the ongoing home projects which are financed by the bank itself. The term of the guarantee will coincide with the time it takes to receive an occupation certificate for the project.
Noteworthy here is that RBBG will be valid only for buyers who have taken a home loan from SBI for the projects identified and eligible for the bank guarantee. For the start, the scheme reportedly will focus on affordable housing segment in the range of up to Rs 2.50 crores in the top seven Indian cities which includes namely NCR, MMR, Pune, Bengaluru, Hyderabad, Kolkata and Chennai.
Once implemented, RBBG will ensure that borrowers can seek a refund if the builder fails to meet the deadline under the Real Estate (Regulation and Development) Act. The guarantee will be made available to only RERA-approved projects and a project will be considered stuck after it crosses the RERA deadline.
“We are committing that till the time a project receives an OC, there will be a guarantee which the bank will offer buyers who take loans from it. This will be a win-win situation for homebuyers, builders and the bank,” Times Of India quoted SBI Chairman Rajnish Kumar as saying.
Another attraction of RBBG is that all reputed builders fulfilling the prescribed criteria by the bank can avail loan between Rs. 50 crore to Rs. 400 crore.
To start off with, SBI has reportedly tied up with Mumbai-based Sunteck Realty for three of its ongoing projects in Mumbai Metropolitan Region (MMR).
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