SBI opens affordable housing loan cell

Mumbai: The country's largest lender State Bank of India inaugurated its first 'affordable housing loan' cell in Mumbai, which will provide a platform for its customers to interact with the bank.

The bank has initiated this as a pilot project in association with a few builders operating in the affordable housing segment, a press release issued here said.

The first facility has been set up in Nalla Sopara where the bank has its branch, the release said.

"The facility will be set up near localities where affordable housing projects are undertaken. The cell is a distinct delivery structure, which has been designed to offer a simple model for appraisal/sanction methodology suited to the segment," a bank official said.

The demand for affordable houses has not been met due to various reasons, including inadequate supply of houses as well as absence of credible builders in this field, the release said.

To begin with, the focus would be on loans in the range of Rs 8-15-lakh.

The bank would also provide ATM facility and Internet kiosks at the sites where such cells would be opened, the release said.

Customers would also have the facility of making cash payments after business hours through a customer service point of a banking correspondent at a nearby location, it said.

However, disbursement of loans would be made only through the bank's branches.

Source: Financial Express