If you are planning to buy a property in an environment friendly residential project through a home loan, SBI could offer you the best deal. The largest lender of the industry, SBI has introduced a new home loan product that would provide exciting offers to the borrowers.

The bank has introduced a scheme known as ‘Green Homes' whereby it has decided to assist environment friendly residential projects by offering concessions such as reduced margin, softer interest rate, and zero processing fee on home loans.

An environment friendly residential project, which has been rated by the Indian Green Building Council (IGBC), will be approved by SBI under this new product and thereby borrowers who want home loans for property rated under IGBC will get concessions.

The concessions that the bank offers include the upfront money at 15% against the 20% rate under normal cases, lower interest rates by 25 basis points than the card rates and zero processing fee.

A senior SBI official said, "As part of our endeavour to promote rated eco-friendly residential projects, we have announced easy loan terms for prospective home buyers. Our move will also encourage builders to come up with such projects."

"Today, home buyers are ready to shell out extra money towards amenities such as swimming pool, club house and joggers' park. Frankly, these are only ‘theoretical' benefits which a majority of the residents hardly use. In the case of eco-friendly homes, owners will actually realise tangible as well as intangible benefits. Hence, buyers should shed their reluctance to pay that extra, which can be recouped in 2 to 3 years, for buying a house in an eco-friendly project as they stand to gain via savings in terms of energy and water," added the official.

As per IGBC, a ‘Green Building/ Home' is one that consumes less energy, water and natural resources. It also creates less wastage and is healthier for the people living inside compared to a standard building. The green homes would enable its owners to enjoy tangible benefits in the form of 20-30% energy savings. This is possible as the apartments are designed in such a manner that ample natural light throughout the day can be consumed by the occupant.

Further the material used in the construction of these homes guarantees adequate thermal storage mass for retaining heat energy and thereby keeping the interiors cool even in summers. Even water savings would be possible through harvesting and recycling.

Indian Green Building Council (IGBC) is a part of the Confederation of Indian Industry - Sohrabji Godrej Green Business Centre.