Affordable realestate in India may have finally come of age as the SBI and the Confederation of Real Estate Developers of India (CREDAI) have joined together to create affordable housing in India. The agreement between the SBI and the CREDAI is to be valid for three years in which time the SBI is expected to extend construction finance to developers to the tune of 12,500 crores. Notably the SBI believes that in total, over a period of two to three years, borrowers will demand 25 thousand crores of housing loans to purchase affordable property across India.
CREDAI and Affordable Property Today
The CREDAI has recently launched 373 affordable projects that once completed, put together, will consist of two lakh thirty three thousand individual housing units. A sum exceeding seventy thousand crores has been invested in the 273 affordable projects mentioned which were launched by Union Minister of Urban Development Housing and Urban Poverty Alleviation Minister Mr. Venkaiah Naidu.
The SBI and CREDAI Partnership
The SBI is expected to support the CREDAI as its national banking partner. The State Bank of India is India’s largest bank and the biggest mortgage lender in the country as well. As the national banking partner of the CREDAI, the SBI will also provide easy construction finance for affordable housing projects to developers who are members of the CREDAI that too at a lower rate of interest than the SBI does to other borrowers.
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The SBI and Affordable Housing
As a housing financier, the SBI is the largest one in the country when it comes to financing affordable housing. According to this property website, those within the SBI have stated that the partnership with the CREDAI is a special time as the partnership between the SBI and CREDAI is part of a larger national mission to provide housing for all in India by 2022. The initiative between the SBI and CREDAI is expected to fulfill the dream of homeownership for millions of Indians and in the long run will boost the real estate sector in India and the nation’s economy as well.
Financials of SBI’s Partnership with CREDAI
The SBI will provide up to 35 basis point (.35 percent) interest rate concession to eligible builders in the form of construction finance. A partnership between the SBI and the CREDAI will benefit both builders who are members of the CREDAI and to end users who actually buy the housing units.
The CREDAI president has stated that the organizations partnership with the SBI will bring the CREDAI one step closer to it’s goal of providing housing for the masses in India and to elevate the quality of lives of many of the urban poor in India. According to many real estate sites in India once the urban poor have a permanent home they will cease to suffer from the many disadvantages that are a part of not having one’s own physical home address. for mor info click here