SBI announces ‘residential builder finance with buyer guarantee’ scheme

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News:State Bank of India (SBI) has announced a ‘residential builder finance with buyer guarantee’ (RBBG) scheme.

Facts:

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. 

Additional information:

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.