SBI to provide substantial loan to developers to boost morale
Mumbai: The State Bank of India has reached an agreement with the Confederation of Real Estate Developers Association of India to provide substantial loan to its members to help this sector tide over the financial crisis created in the wake of demonetisation.
According to bank sources here on Tuesday, the agreement provides for loans to the tune of Rs 12,500 crores which are likely to boost the sagging morale of builders.
In addition ,the bank will give loans totalling Rs 25,000 crores to the homeless to buy their own houses.
These loans may be used to purchase houses to be built by members of the Association. Loans to developers have been tied with affordable housing scheme which has been already launched.
Under the scheme as many as 375 affordable houses will be built within two to three years. Time-schedule will be maintained at all costs.
Meanwhile, Union minister for housing and urban poverty alleviation Venkaih Naidu has launched a scheme for construction of 2.33 lakh housing units in Maharashtra under the house-for-all mission. The government has promised to provide houses to all by the year 2022 under the plan.
This SBI move will cheer builders in other parts of the country as well because funds for this sector had almost dried following fall in demands and non--payments installments by the developers in the wake of note ban.