News:State Bank of India (SBI) has announced a ‘residential builder finance with buyer guarantee’ (RBBG) scheme.
About the scheme:
- The scheme aims to give a push to residential sales and improve home buyers confidence.
- Under this scheme,the SBI will issue a guarantee for completion of select residential projects to customers who have availed home loans from it.
- The scheme will focus on affordable housing projects priced up to 2.50 crore rupees in 10 cities initially.
- The guarantee would be given by the bank till the project gets the occupation certificate(OC).
- However, the guarantee will be available only for RERA registered projects and a project will be considered stuck after it crosses the RERA deadline.
About Real Estate (Regulation and Development) Act(RERA),2016:
- The Real Estate (Regulation and Development) Act(RERA),2016 seeks to regulate the real estate sector.It seeks to empower and protect property consumers and make transactions fair and transparent.
- The act establishes Real Estate Regulatory Authority(RERA) in each state for regulation of the real estate sector and also acts as an adjudicating body for speedy dispute resolution.