SBI, CREDAI ink MoU for concessional loan for housing projects

State-owned SBI and realtors’ body CREDAI have signed an agreement to provide loans at a concessional 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, State Bank of India (SBI) said in a statement.

“We have signed an MoU with CREDAI. We will be providing 10 basis points concession to home buyers and 10-35 basis points to CREDAI’s developer members,” SBI Managing Director (National Banking Group) Rajnish Kumar told.

He said SBI is a major player in home loans segment with 25 per cent market share.

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 Rs 70,000 crore.

SBI, the county’s largest bank and mortgage lender, will support CREDAI as their national banking partner and provide loans at concesssional interest rate towards construction finance.

“The lower cost of interest to builders will further reduce the cost of apartment. I hope developers will pass on this benefit to consumers,” Rajnish said.

(Agencies)

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