SBI, CREDAI signs MoU for concessional housing loan

Public sector lender State Bank of India(SBI) and real estate body CREDAI have signed an agreement to provide loans at a subsidised rate to builders as well as customers for affordable housing projects.
“SBI and Credai have signed a Memorandum of Understanding (MoU) to collaborate and work towards the development of the real estate sector, specifically through the affordable housing and green housing projects. The duration of the agreement is for a period of three years,” SBI said in a statement.
Earlier this month, CREDAI had announced that its members are launching 373 affordable housing projects comprising 2.33 lakh units with an investment of over Rs70,000 crore, reported the LiveMint.
“The lower cost of interest to builders will further reduce the cost of apartment. I hope developers will pass on this benefit to consumers,” Kumar said. For consumers, SBI has launched an exclusive tailor made scheme for affordable housing, ‘SBI Hamara Ghar’, which will ease the process and enable the maximum number of consumers to avail home loan for these projects.
“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,” said Rajnish Kumar, managing director of SBI.
“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 Jaxay Shah, president of CREDAI.

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