Things to know about RBBG scheme | Fusion - WeRIndia

State Bank of India (SBI) launched a home buyer finance guarantee scheme, ‘Residential Builder Finance with Buyer Guarantee scheme‘ (RBBG).

Home buyers can avail RBBG scheme for a housing project with a maximum price of a single unit of ₹2.5 crores.

The developers can also avail a loan between ₹50 crores and ₹400 crores under the scheme. Here are certain things to know about RBBG scheme:

• RBBG scheme provides a guarantee of completion for select residential projects to its customers who avail home loans.
• This scheme begins in 10 cities. It will be extended further.
• This includes RERA registered projects as well.
• The scheme protects the interests of the buyers. Often, they are unable to do anything if the project gets stuck in the middle.
• They can neither move forward nor backward as they already paid a certain amount of advance amount to the builder.
• This scheme provides a guarantee to buyers who take loans from the bank which will continue until the project receives an occupation certificate (OC).
• For instance, if a buyer has booked a flat for ₹2 crores and has paid ₹1 crore, and the project gets stuck, then the bank will refund the amount, i.e. ₹1 crore to the buyer.
• This scheme is a win-win situation for all stakeholders involved in this project including home buyers, builders and bank.
• Any reputed builder that fulfills the criteria prescribed by the bank can avail loan between ₹50 crores and ₹400 crores.
• The scheme begins with the project of Sunteck Realty that has tied up with SBI for its ongoing projects in Mumbai Metropolitan Region (MMR).
• Many people in the real estate sector welcomed the move of SBI.

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