State Bank to provide guarantee to homebuyers on completion of projects

This cover will be for SBI funded residential projects and those availing home loan for SBI

State Bank of India (SBI) will provide a guarantee of project completion to homebuyers with the objective of pushing up demand for residential units. The scheme also aims to complete housing projects that are stalled.

The Residential Builder Finance with Buyer Guarantee (RBBG) will be for SBI-funded residential projects and those availing home loans from SBI. The guarantee will be available till the project gets an occupation certificate. The fees for such a guarantee will be borne by the developer.

SBI Chairman Rajnish Kumar said the RBBG will focus on the affordable housing segment with home prices of up to Rs 2.5