MUMBAI: State Bank of India and realty developers’ apex body the Confederation of Real Estate Developers Association of India (CREDAI) have entered into a pact for financing of affordable housing projects.
Under this agreement, which is for a period of three years, SBI is expected extend construction finance around Rs 12,500 crore to developers. In addition to this, the bank estimates housing loans for homebuyers in these projects to be nearly Rs 25,000 over the next 2-3 years.
Recently, CREDAI launched 373 affordable housing projects through its member developers across the country with an aim to provide 2.33 lakh housing units. The investment in these projects is pegged at over Rs 70,000 crores. These projects were launched by Venkaiah Naidu, Union Minister of Urban Development, Housing and Urban Poverty Alleviation.
Through this partnership, SBI, the county’s largest bank and mortgage lender will support CREDAI as their national banking partner. It will also provide easy construction finance to CREDAI member developers for eligible affordable housing projects at concessional interest rate.
“SBI is the largest affordable housing financer in the country. It’s a special moment for us to partner with CREDAI for affordable housing aimed at achieving National mission of Home for all by 2022. This initiative will help millions of home buyers fulfill their dream of owning a home. In the long run, it will give a boost to the real estate industry and economy as a whole,” said Rajnish Kumar – MD (NBG), SBI.
The pact will facilitate bi directional incentives for the customers and the developers of these projects. For CREDAI member developers, SBI will provide an interest concession up to 35 bps to eligible builders for construction finance.
“Our Association with SBI brings us one step closer to fulfill our promise of providing a home to the masses, elevate their quality of life and reduce the repercussions of not having a permanent home or not being able to afford one. Rebate on construction finance by SBI will be instrumental in facilitating a more affordable ecosystem which will lower the construction costs and enable the developers to pass on the benefits to the consumers,” said CREDAI President Jaxay Shah.
SBI and CREDAI have also tied up for green construction projects. SBI will be providing an interest concession for the construction of environment-friendly green projects and also a processing fee waiver for home loans under SBI Green Home Loans.
For the consumers, SBI has launched an exclusive tailor made scheme for affordable housing, “SBI Hamara Ghar” that will ease the process and enable maximum number of consumers to avail home loan for these projects.
Walls N Roof Comment : SBI is one of the largest financing institutions in the country. SBI is one of the banks to have announced the reduction in the home rates in the new year. CREDAI had recently launched their affordable housing projects in association with their members. Further facilitating affordable housing CREDAI has joined hands with SBI for providing financial aid towards the development of affordable Housing. SBI has also created a tailor made housing loan schemes for the consumers. The association of SBI and CREDAI will further act as in impetus for the affordable housing project.