SBI, Credai sign MoU to give fillip to realty sector

The State Bank of India and apex real estate sector body — the Confederation of Real Estate Developers Associations of India (CREDAI), on Monday signed a memorandum of understanding.
Represntational Image. | Reuters
Represntational Image. | Reuters

CHENNAI: The State Bank of India and apex real estate sector body — the Confederation of Real Estate Developers Associations of India (CREDAI), on Monday signed a memorandum of understanding (MoU) focused toward providing loans to both builders as well as customers for affordable housing projects.,

The three-year agreement will see the bank provide a 0.10 per cent concession to home-buyers and a 0.10 - 0.35 per cent concession to CREDAI’s member developers, according to SBI managing director (National Banking Group) Rajnish Kumar. SBI has also launched a custom-made scheme for affordable housing -- Hamara Ghar — which is focused on the home-buyer.

“This initiative will help millions of home buyers fulfil 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, elevating the citizens from aspirants to actual home owners,” Kumar said.The move comes in the wake of added government incentives to boost the affordable housing sector.

CREDAI had announced recently that its member developers are in the process of launching 373 projects across India, with 2.33 lakh units worth Rs 70,000 crore. SBI, meanwhile, is one of the largest players in the home loan segment, accounting for one-fourth of the market.

“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,” added CREDAI President Jaxay Shah.

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