Country’s largest public sector bank, State Bank of India has announced a ‘residential builder finance with buyer guarantee’ (RBBG) scheme. It aims at giving a push to residential sales and improve homebuyers’ confidence.

Under this scheme announced yesterday, the SBI will issue a guarantee for completion of select residential projects to customers who have availed home loans from it. The scheme will focus on affordable housing projects priced up to 2.50 crore rupees in 10 cities initially. SBI Chairman said that this will be a win-win situation for homebuyers, builders and the bank. Under RBBG, the guarantee would be given by the bank till the project gets the occupation certificate (OC).

The guarantee will be available for RERA registered projects and a project will be considered stuck after it crosses the RERA deadline.