The State Bank of India (SBI) will soon ink an MoU with the Maharashtra government-owned PSU Shivshahi Purnarvasan Prakalp (SPPL) for financing affordable housing under the State’s slum rehabilitation schemes.

The SBI will make available funds for the construction of affordable housing tenements under the slum rehabilitation schemes, including the Dharavi Redevelopment Project, of the Maharashtra government.

According to sources in SBI and SPPL, the MoU is expected to promote private sector participation in construction of affordable housing under the slum rehabilitation schemes in Mumbai. The SBI will promote its home loan business with special offers under the SBI Hamara Loan scheme.

Before sanctioning loans, SBI will take precautions such as scrutinising the proposals of the selected builders and developers along with the documents of slum rehabilitation schemes. Credit appraisals will also be done on the builders and developers.

‘Hamara Ghar’ According to Vaijinath MG, Chief General Manager, SBI has deployed 7,500 specialised ‘feet on street’ to market its home loans. The bank has floated its Hamara Ghar scheme that offers loans at a fixed rate of 8.35 per cent for the first two years of home loans up to ₹30 lakh.

The Maharashtra government has recently announced that it will set up an Affordable Housing Corporation to construct 20 lakh tenements for ₹2,000 crore by 2022 under the Pradhan Mantri Awas Yojna. The corporation will be incorporated with the shareholding of the Maharashtra Housing and Area Development Authority, Slum Rehabilitation Authority, and Shivshahi Punarvasan Prakalp (SPPL) among others.

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