Buying a house is becoming really difficult. People’s trust in builders is decreasing. The identity of the builder has become that of leaving projects unfinished and defaulter. Sometimes the builder is forced to leave it incomplete due to the high cost involved in completing the project. In this situation it is very difficult for home buyers, as the builder escapes. But now the home buyers need not worry, as the country’s largest lender SBI Bank has brought a solution to this problem. If the builder delays the project, SBI will refund the payment to the home loan takers.
Under the scheme, SBI will guarantee the completion of selected residential projects to customers taking home loans. If the project is delayed or stuck, the payment for the house will be returned to the customer. The name of the scheme is Residential Builder Finance with Buyer Guarantee (RBBG). Now home buyers can buy the house with confidence. The scheme will increase the sale of houses in India and will prove beneficial for home buyers. Therefore, information related to this is being given through this article.
The Residential Builder Finance with Buyer Guarantee (RBBG) scheme can prove to be the solution to the problems of home buyers in India. Under the scheme, SBI will refund the entire principal amount if the scheme is not completed within the required time frame. The RBBG scheme will be valid only till the customer gets an Occupancy Certificate ie the allotment letter. You can avail the RBBG scheme for homes up to a maximum of Rs 2.5 crore. All developers who meet the SBI criteria can avail loans up to Rs 50-400 crore under the RBBG scheme. This scheme can prove to be a game changer in the field of real estate. This scheme can be especially beneficial for those who wanted to buy a house by taking a loan, but were afraid of taking home due to the unfinished and incomplete project. RERA and GST also ensure that you get home on time. The RBBG scheme will include RERA’s registered projects. The project will be considered stuck after RERA deadline. Under the scheme, SBI will be guaranteed on the home loan taken by you till the customer gets an occupancy certificate. The scheme is beneficial for all parties including banks, builders and home buyers. SBI believes that RBBG scheme can prove to be a game changer in the real estate sector and this will increase the purchase of residential units and increase customer confidence. However, SBI will only take risks for developers who are known to complete projects on time.
Why SBI is the best bank?
SBI has reduced the external benchmark rate by 25 bps to 7.8%. This will greatly benefit many home loan takers. They will now be able to take loans at 7.9% instead of 8.15%. SBI is the largest lender bank in the country and SBI holds 22% of the total home loan market in India.
How RBBG Scheme Works?
Suppose you are a buyer and you have booked an apartment in a project of Rs 1 crore. You have already paid Rs 50 lakh. What if this project gets stuck in the middle? So under the scheme SBI will refund you 50 lakhs paid by you. The guarantee period will remain until the customer gets an occupancy certificate. So if you have booked an apartment of Rs 2 crore in a project and have already paid Rs 1 crore and the project is not completed for any reason, then SBI will pay you one crore rupees which you have Was given to the builder. This can only be done until the builder gives you an occupancy certificate. As part of the plan, SBI has tied up with Suntec Realty for three projects. These projects are underway in MMR (Mumbai Metropolitan Region). SBI’s RBBG scheme will be launched in 10 cities and includes affordable housing projects that cost up to Rs 2.5 crore.
Salient Features of RBBG Scheme
- The scheme guarantees home loan takers from SBI to return the money in the event of non-completion of projects, this gives financial security to the customer.
- The benefit of the scheme will be available for taking affordable houses or apartments up to Rs 2.5 crore.
- Reputed builders, who meet the criteria of SBI, can get loans of up to Rs 50-400 crore.
- You can buy houses in projects approved by SBI in 7 cities. The entire process remains transparent and this increases customer confidence.