The State Bank of India (SBI), the country’s largest government bank, has launched a unique scheme to bring the real estate sector going through the downturn in the right condition. Under this scheme, if the homebuyers cannot get possession of the house on the scheduled time, then the bank will return the entire principal amount to the customer. This refund scheme will be valid till the builder gets the Occupation Certificate (OC).
People who are in trouble due to lack of possession will get benefit
Under this scheme called ‘Residential Builder Finance with Buyer Guarantee Scheme’, a home loan can be available for a house worth a maximum of Rs 2.5 crore. In this, builders who follow the conditions of the bank can also get loans ranging from Rs 50 crore to Rs 400 crore. SBI Chairman Rajneesh Kumar said that the scheme that we have launched will have a big impact on the real estate sector as well as the house buyers who get into trouble due to not getting possession of the house.
He said, ‘After a lot of changes in the Real Estate Regulation and Development Act (RERA), Goods and Services Tax (GST) rules and demonetisation, we realized that giving homebuyers a timely home and getting their money stuck This is a great way to save. In the first phase of this scheme, SBI has entered into an agreement for three projects with Suntec Developers of Mumbai. These projects will be made in the metropolitan region of Mumbai.
This is how this scheme will work
Rajneesh Kumar explained that if a buyer has booked a flat of Rs 2 crore and has paid Rs 1 crore. In such a situation, if the project gets stuck, we will refund the buyer 1 crore rupees. The guarantee period will be linked to OC. This guarantee will be available for RERA registered projects. The project will be considered stuck after the time limit of RERA is exceeded.
Government took these steps
Various efforts are being made to promote the real estate sector struggling with sluggishness. The Central Government has created an Alternative Investment Fund (AIF) worth Rs 25,000 crore to give relief to developers with unfinished projects.