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As the world is grappling with global warming and climate change, there is a growing sense to conserve energy and protect the environment. Countries around the world are now turning to environment-friendly alternatives. A holistic look at construction and the way we live brings us to the concept of a Green home.
What is a Green Home?
A Green home is a house that is equipped with energy efficient techniques to conserve water, electricity and other natural resources.
Green homes are built using traditional techniques and materials, making it affordable and cost-effective. The property claims to be eco-friendly must have facilities such as rain-water harvesting, recycling and solar enabled power system.
Other facets of a green home include optimisation in home design to reduce the load on conventional energy and preserving top soil during and post construction.
SBI Green Home Loan
Dwelling in an environment-friendly residence could be a boon to majority of the Indian population. Many shell out the savings of their lifetime to own a good house.
SBI, one of the leading banks in the country, has come up with the Green Home Loan, facilitating finance for projects with such amenities. But the apprehension is, Will it be economic-friendly?.
SBI has introduced this scheme to boost the growth of the real estate sector by creating affordable housing for all Indians. This housing scheme is tailored with the intention of benefitting the prospective home buyers and developers by lowering construction costs with the use of eco-friendly materials.
With the low interest rate, the builders can erect more affordable houses and get many customers who can also enjoy maximum benefits in terms of price and repayments.
The home buyers opting for SBI Green Home Loan can enjoy reduced margin, concessions, low rate of interest and zero processing fee.
Features of SBI Green Home Loan
Interest Rate: The customers will have to pay an interest of 8% during the first year of repayment. For the 2nd and 3rd years, the interest rate is set at 8.5%, and the from the 4th year, the customers can opt for fixed or floating based payment. For loans above 75 lakhs, the bank offers only floating rate based repayment option.
Tenure: Home buyers can enjoy an easy long-term repayment of up to 25 years with the maximum age of 70 years.
Loan Amount: The customers can avail a minimum loan amount of 5 lakhs as SBI Green Loan and no cap is set as the maximum amount.
Benefits of SBI Green Home Loan
Home buyers opting for SBI Green Home Loan can enjoy following benefits:
The bank provides 5% discount on the margin amount.
Buyers can get 0.25% concession on interest rate.
Customers can get full waiver of processing fees.
Documents Required to apply for SBI Green Home Loan
All KYC documents, including identity, age and address proof
Income Tax documents like Form 16 or Income Tax Returns
Salaried applicants need to submit bank statement of last 6 months
Self-employed and business professionals must submit income tax returns, and loss and profit report of last 3 years
If you are planning to apply for an SBI Green Home Loan, you need to evaluate your credit health by checking your credit score first.
In the backdrop of climate change, experts have termed SBI Green Home Loan as a credit product in the right direction. With concessions, fee waiver and reduction of margin rate, this scheme can truly become a game changer in the housing sector.
