State Bank of India (SBI) is shortly reintroducing a scheme that will encourage borrowers to buy units in green housing projects, offering them 10-25 basis points (bps) discount on the prevailing interest rates.

 

The proposal is to evaluate environmental, social, and corporate governance, or ESG-compliant builders, and offer home buyer’s cheaper loans. The discount for retail customers will be on the spread the bank charges over and above its external benchmark-based lending rate, currently at 9.15%.

 

The bank will look at rating; offered by Indian Green Building Council (IGBC) for this product. Builders following environment-friendly practices will benefit from this concession along with buyers looking for green homes. The IGBC’s new green building rating system considers several features like sustainable architecture and design, water conservation and energy efficiency, building materials and resources. According to IGBC, green projects could help save 20-30% electricity and 30-50% water.

 

SBI is urging consumers to embrace green buildings and benefit from the scheme.

 

Rishi Pranaya is IGBC Pre-certified Gold.

 

Source: Hindustan Times