State Bank of India’s ‘'Residential Builder Finance with Buyer Guarantee Scheme’' provides buyers with a guarantee that the project will be completed on time and that they will have possession of the residence within the project’s scheduled deadline.
The Real Estate Regulation and Development Act (RERA) had issued guidelines in order to protect the interests of home buyers from delays in getting possession of houses or flats that they had paid for already due to stalling from real estate developers.
Builders are now mandated by RERA to provide a specific date to buyers by which the project will be completed and ready for possession. However, extraordinary circumstances that are beyond the control of the builder is taken into account which can still result in delays in handing over the flat to the buyer.
Delays in obtaining possession of the desired house or apartment can result in financial challenges for buyers, especially if they have availed a home loan in order to buy the property. When there is a delay, they not only have to start paying the Equated Monthly Instalments (EMIs) of the home loan, which will run into thousands, but also most probably have to continue paying the rent on the property they are currently residing in, if it is not their own.
This is a special scheme that aims to provide a guarantee to the buyers of under-construction properties that they will receive the property on the date promised by the developer. The date of possession that is taken for reference is the date that is provided in the RERA registration documents of the project in question.
If the project’s occupancy certificate is not provided by the given date and the construction is not completed by that date by the developer, then the borrower will be refunded the entire amount, including the margin money, by SBI.
Some of the major eligibility features for projects to come under the SBI scheme are as follows:
Buyers benefit from the SBI scheme in the following ways:
Real estate developers benefit from the SBI scheme in the following ways:
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