- SBI DGM Ravindra N Hitnalli
SBI Hyderabad Region DGM Ravindra D. Hitnalli said that if all the documents are correct, the home loan will be granted in just four days. “We are always at the forefront of providing project finance to builders along with home loans,” he said. Speaking to the Real Estate Guru at the LHO office in Hyderabad Koti, he said that SBI accounts for 30% of the Rs 6,000 in real estate transactions that happen every month in Hyderabad. It is said that SBI is providing housing loans and builder finance up to Rs 3,000 crore per month. It has been revealed that in the last three to four years, they have sanctioned loans of Rs 1,000 to Rs 1,500 crores per month. At present, they are giving home loans in addition to Rs 600 crore per month, making it a total of Rs 3,600 crore per month. He said that they are also providing funding for the projects being constructed by some well-known builders in the market. Let us hear more from the DGM.
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.”
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.”
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.”
What do they consider?
“We grant loans based on monthly salary and repayment ability. We lend 80 percent on property worth Rs. 1 crore and 75 percent on houses worth above Rs. 1 crore. Let us consider three aspects in the case of home loans. In the case of employees, we will see Form 16, two-year tax returns. If it is business class, we will see the details of three years of IT returns, KYC. The same goes for home loans for professionals. But in whatever project they are buying, we will definitely consider the valuation and legal opinion of the respective project.”
The specialty of Hyderabad!
“Although there is some delay in the delivery time by the builders in Hyderabad, builders do not hold back in providing facilities to the customers in a competitive manner. It does not care if the cost increases in the middle of the construction. It is true that there is some delay in the delivery of apartments in other states. There are projects in various cities that have been stopped in the middle. But there is no such situation in Hyderabad. Infrastructure is developing here. The government is providing good support to the real sector.”
