SBI Announces Residential Builder Finance with Buyer Guarantee (RBBG) Scheme to Safeguard Homebuyers

The State Bank of India (SBI) has announced Residential Builder Finance with Buyer Guarantee (RBBG) scheme to safeguard home buyers financially.
Under the RBBG scheme, SBI will issue guarantee for completion of residential projects to customers availing SBI Home Loans.
SBI guarantees the refund of the principal amount if a builder fails to complete the project within the stipulated time.
To begin with, SBI has signed MoU with Sunteck Realty Limited (SRL) for RBBG scheme, for its three ongoing projects in Mumbai Metropolitan Region (MMR).

Basic Features of RBBG Scheme

The tagline of Residential Builder Finance with Buyer Guarantee scheme is “Sapna Aapka Bharosa SBI Ka”.
The scheme will focus on affordable housing segment with home price of up to Rs. 2.50 crores in 10 Indian geographies initially.
The term of the guarantee will be till the time a project receives an occupation certificate (OC).
Suppose a buyer has booked a flat in a project for Rs 2 crore and has paid Rs 1 crore, and if the project gets stuck then the bank will refund Rs 1 crore.
The guarantee will be available for RERA registered projects and a project will be considered stuck after it crosses the RERA deadline.
All reputed builders fulfilling the prescribed criteria, including Star rating and CIBIL score, by the bank can avail loan between Rs. 50 crores to Rs. 400 crores.