- SBI DGM Ravindra N Hitnalli
Excerpts from the interview:
“On behalf of our bank, we provide two types of financial services to the real estate sector. In circle offices through CCRG, we will finance the project up to Rs 150 crore. Larger projects are funded through our office. In the current financial year, we have funded around 22 projects to the tune of Rs. 458 crore. We have set a target of giving finance to builders up to Rs 1,500 crore.”
Earlier, they used to grant home loans only. “Now, keeping in mind the increasing demand in the construction sector, we have decided to give finance to the builders. Demand for houses is evergreen. Moreover, the real estate sector is growing exceptionally well in Hyderabad, where we have tied up with around 500 construction firms across Telangana, along with financing for builders. About 400 companies are located in Hyderabad alone.”
“To reduce the delay in legal aspects and documentation related to applicants for home loans and builders’ loans, we have set up a separate section of lawyers and a separate engineering section for project approvals. This section goes to the field themselves, inspects all the details, and recommends to home buyers and developers whether to go ahead with it or not. If all the details are correct, we will grant the home loan within four days. We have set up 10 processing centres in Hyderabad and 26 processing centres across Telangana.”
Funding for these projects only!
“We are funding builders of projects that have RERA approvals only. Builders should have experience in constructing five projects. At least four successful projects should be completed. They should have agreed to collateral security against the fund provided by SBI. In present cases, builders have to show 125 percent of the value to the bank as security value in case the majority of the communities do not come forward for the mortgage of the landlord's property under the Joint Development Agreement system.”“So far in this financial year, we have funded 24 new projects with Rs 480 crore. In the last month and a half, there have been applications for SBI funding requiring a budget of Rs 500 crore. We will grant loans for those projects soon. In total, we are ready to fund Rs. 1500 crore this year. Flats should be purchased in projects where all the permissions are in place. If you have SBI approval, you can buy it without any objection. Those who want to take a loan need not go elsewhere, as getting a loan from us is easy. If the project is approved by RERA, the loan is easy to get.
The loan is easy now!
“Home buyers should buy flats in projects that have all the permissions. Remember that you can buy your dream house fuzz-free in these approved projects. If you go to our bank's processing centres and apply, our panel of advocates and engineers will take care of everything. Once they send us a proposal, the loan is sanctioned within four days. Our home loan sourcing team, in-house team, and SBI cop system are always available to buyers. As many as 300 home counsellors are working for customers around the clock. A very small percentage of those who apply for a loan are rejected. It should be remembered that only those who have faith and affordability must come to us for loans.”“In the financial year 2023-2024, we have set a target of funding Rs 7,500 crore. All put together, we have already given a loan of Rs. 3500 crores in 6 months. For financing home buyers and builders, we are ready to sanction Rs. 8,000 crore if required, depending on the demand.”