Under this product, all reputed builders fulfilling the prescribed criteria by the bank can avail loan between Rs 50 crore to Rs 400 crore. Criteria includes Star rating and CIBIL score.
Shares of Sunteck Realty rallied 6 percent intraday on January 9 after country's largest lender State Bank of India signed funding agreement with the company for three projects.
The stock rallied nearly 13 percent in last one month. It was quoting at Rs 441.05, up Rs 17.30, or 4.08 percent on the BSE at 1041 hours IST.
"SBI and Sunteck Realty have entered into a Memorandum of Understanding which is the first step towards boosting the residential housing sector under the bank’s 'Sapna Aapka – Bharosa SBI Ka' scheme with Bank Guarantee to Home Buyers under the Builder Finance scheme," the realty firm said in its BSE filing on January 8.
State Bank of India announced Residential Builder Finance with Buyer Guarantee (RBBG) to safeguard homebuyers financially by issuing a guarantee for completion of projects to customers availing SBI home loans.
"Now, customers will be able to secure their investment in the ongoing home projects financed by the bank itself. RBBG will focus on affordable housing segment with home prices of upto Rs 2.50 crore in seven Indian geographies initially," it added.
Under this product, all reputed builders fulfilling the prescribed criteria by the bank can avail loan between Rs 50 crore to Rs 400 crore. Criteria include Star rating and CIBIL score.
Commenting on this prestigious collaboration, Kamal Khetan, CMD, Sunteck Realty said, "We are humbled to be the first partner of the biggest bank of India. This MoU is a win-win for our customers who would get the best value proposition for the best quality homes."Rajnish Kumar, Chairman of SBI believes that RBBG will build confidence among home buyers by securing their hard-earned money and at the same time will boost under-stress real estate sector.
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