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SBI will return the money if the builder delays, construction (Full Report)

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SBI had said that SBI will return the money to the customer if the builder delays in giving you the house, for which the ‘Residential Builder Finance with Buyer Guarantee’ (RBBG) scheme was launched. But not everyone will benefit from this scheme, only select people will get it.

Highlights

  • Home buyers who have already taken home loans from SBI and put them in projects that are not connected to the bank, they will not come under the scheme
  • MMR, NCR, Hyderabad, Bengaluru, Pune, Kolkata and Chennai are the only schemes under this scheme
  • Currently, the scheme has only one developer and is available for one project only.
  • This scheme will work only when the construction stops and it is decided that it will no longer proceed
The beginning of 2020, Navneet Dubey launched a scheme in the interest of home buyers by the State Bank of India (SBI). The bank had said that SBI will return the money to the customer if the builder delays in giving you a home , for which the ‘Residential Builder Finance with Buyer Guarantee’ (RBBG) scheme was launched. There seems to be a guarantee scheme for customers taking home loans, it will be beneficial for few customers. Let’s know everything about it.

Anurag Mathur, CEO of Property Consultant Savills India, said that home buyers who have already taken home loans from SBI and put them in projects that are not associated with the bank, will not come under the scheme. According to him, “there are still challenges such as project quality, developer risk assessment and even after the implementation of the scheme, they are expected to continue.”

only 7 cities, plan to launch scheme

The SBI press release clearly indicates that the guarantee scheme offers home buyers to invest in SBI approved projects, which will apply to projects in seven cities. These cities include Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Hyderabad, Bengaluru, Pune, Kolkata and Chennai.
Read: Do not believe these jumlas, you will be at a loss.
Available in select branches of SBI, the scheme is
currently only one developer within the scope of the scheme and it is available only for one project. Mathur said, ‘This is only for the pilot project of Suntec Reality, a Mumbai-based real estate development company. Soon more developers will take this scheme, so it is not clear how long you will actually get the benefit of this scheme.

SBI approved scheme for under construction projects

SBI loan finance scheme is applicable only for those under construction housing projects where the entire loan is given by SBI. CEO of Sai Estate Consultants Rahul Grover said that the scheme has many drawbacks. This is applicable only to those housing development whose financing has been done completely by SBI. It will not be a scheme for home buyers who will buy flats in projects which have got loans from many banks.

Only the principal amount of the loan will be guaranteed to be returned

Grover said that when people decide to buy an under construction property, they have to pay downpayment, loan interest, GST, registration and stamp duty etc. But this scheme will only work when the construction stops and it is fixed Let it be done now. According to the scheme, if the project cannot be revived, the bank will only return the principal amount and will not include the payments made initially. Under the scheme, the loan borrower must understand the ‘project delay clause’ before signing the final agreement while purchasing a flat loan delay in the project. It tells how much the builder will pay as compensation when the project is delayed. SBI’s RBBG scheme will focus only on affordable housing segment. The segment will comprise homes up to Rs 2.5 crore in seven cities.
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