SBI Introduces RBBG Scheme to Refund Home Loan Customers If Their Money Gets Stuck in Stalled Projects

Last Updated : Jan. 9, 2020, 2:42 p.m.

The country’s largest lender State Bank of India (SBI) has introduced the Residential Builder Finance with Buyer Guarantee (RBBG) scheme for its home loan customers. The development is significant given that the customer confidence in the real estate space has dropped considerably due to numerous project delays. The scheme will provide a guarantee of the completion of select residential projects to its SBI home loan customers. SBI Chairman Rajnish Kumar while addressing the media persons said, “ the RBBG scheme will enhance the confidence of home loan customers and speed up the sales of residential units”.

Which Projects will the RBBG Scheme Cover?

The scheme will start from 10 cities and cover residential projects including affordable homes priced upto ₹2.5 crores. Besides, the Real Estate Regulatory Authority (RERA)-registered projects, which would be considered “stuck” once they go beyond the RERA deadline. Shedding more lights on the scheme, Kumar said that the bank is committing that till the time the project gets an Occupancy Certificate (OC), it will issue a guarantee to buyers who take home loans . As a result, it will benefit all three – customers, builders and the bank. Kumar also explained the benefit by taking the help of an example shown below.

Example – A customer has booked a flat for ₹2 Crores and paid ₹1 Crore. If the project gets stuck, the bank will refund ₹1 Crore to the customers.

Which Realtors Has SBI Tied Up with for RBBG Scheme?

As of now, SBI has collaborated with Sunteck Realty for its three ongoing projects in Mumbai Metropolitan Region (MMR). The reputed builders, who fulfill the criteria as laid down in the scheme, can get a loan between ₹50 Crore and ₹400 Crore, added Kumar. Sunteck Realty Chairman and Managing Director Kamal Ketan also expressed confidence saying that the scheme will be a win-win for the customers who would be able to buy the best quality homes having a high-value proposition.