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

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.

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 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.

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.