<p>Country's largest public-sector lender State Bank of India on Wednesday announced 'residential builder finance with buyer guarantee' (RBBG) scheme aimed at giving a push to residential sales and improve homebuyers' confidence.</p>.<p>Under this scheme, the SBI will issue a guarantee for the completion of select residential projects to customers who have availed home loans from it.</p>.<p>The scheme will focus on affordable housing projects priced up to Rs 2.50 crore in 10 cities, initially.</p>.<p>"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 home buyers, builders and the bank," SBI Chairman Rajnish Kumar said.</p>.<p>Under RBBG, the guarantee would be given by the bank till the project gets the occupation certificate (OC).</p>.<p>"Suppose a buyer has booked a flat in a project for Rs 2 crore and has paid Rs 1 crore, and if the project gets stuck then we will refund Rs 1 crore. The term of the guaranteed will be linked till OC," he explained further.</p>.<p>The guaranntee will be available for RERA registered projects and a project will be considered stuck after it crosses the RERA deadline.</p>.<p> Kumar further said this product will improve the confidence of the home buyers and increase the velocity of sales of residential units.</p>.<p>To begin with, SBI has tied up with city-based real estate developer Sunteck Realty for its three ongoing projects in Mumbai Metropolitan Region (MMR).</p>.<p>"All reputed builders fulfilling the prescribed criteria by the bank can avail loan between Rs 50 crore to Rs 400 crore," Kumar added. </p>.<p>Commenting on the tie-up, Sunteck's chairman and managing director Kamal Khetan said, "This memorandum of understanding is a win-win for our customers who would get the best value proposition for the best quality homes." </p>
<p>Country's largest public-sector lender State Bank of India on Wednesday announced 'residential builder finance with buyer guarantee' (RBBG) scheme aimed at giving a push to residential sales and improve homebuyers' confidence.</p>.<p>Under this scheme, the SBI will issue a guarantee for the completion of select residential projects to customers who have availed home loans from it.</p>.<p>The scheme will focus on affordable housing projects priced up to Rs 2.50 crore in 10 cities, initially.</p>.<p>"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 home buyers, builders and the bank," SBI Chairman Rajnish Kumar said.</p>.<p>Under RBBG, the guarantee would be given by the bank till the project gets the occupation certificate (OC).</p>.<p>"Suppose a buyer has booked a flat in a project for Rs 2 crore and has paid Rs 1 crore, and if the project gets stuck then we will refund Rs 1 crore. The term of the guaranteed will be linked till OC," he explained further.</p>.<p>The guaranntee will be available for RERA registered projects and a project will be considered stuck after it crosses the RERA deadline.</p>.<p> Kumar further said this product will improve the confidence of the home buyers and increase the velocity of sales of residential units.</p>.<p>To begin with, SBI has tied up with city-based real estate developer Sunteck Realty for its three ongoing projects in Mumbai Metropolitan Region (MMR).</p>.<p>"All reputed builders fulfilling the prescribed criteria by the bank can avail loan between Rs 50 crore to Rs 400 crore," Kumar added. </p>.<p>Commenting on the tie-up, Sunteck's chairman and managing director Kamal Khetan said, "This memorandum of understanding is a win-win for our customers who would get the best value proposition for the best quality homes." </p>