Mumbai: State Bank of India today launched a residential builder finance with buyer guarantee product, which aims to provide home buyers guarantee for the payments they make to the real estate player.
Explaining the product today, SBI Chairman Rajnish Kumar said that the aim of the product was to give greater comfort to prospective affordable housing finance customers. He said that the idea to come up with a guarantee backed builder finance offering, emerged out of the need to protect home buyers and encourage demand.
As per the product details, the guarantees are for home loans with a price up to 25 mln rupees in seven cities initially through select builder level tie-ups. Builders can avail loans between 500 mln rupees and 4 bln rupees based on criteria such as star rating and CIBIL score. Kumar said that the product could be scaled to more cities based on the response and tweaked too, based on requirements.
