SBI offers lower loan rates for green buildings

Now here is another reason to opt for an environment-friendly green building over run-of-the-mill brick and mortar structures. Banks such as State Bank of India (SBI) are offering special loan rates for green buildings, reports Radhika Pancholi.

Now here is another reason to opt for an environment-friendly green building over run-of-the-mill brick and mortar structures. Banks such as State Bank of India (SBI) are offering special loan rates for green buildings.

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While the normal home loan rate at SBI ranges between 8 per cent and 9.25 per cent, the rate is 0.10 per cent or 10 basis points lesser for those opting for a home in a green building.

“There is an increasing interest in green buildings and we, as an environment-friendly institution, encourage this and therefore the special rates for green buildings,” said P Nandakumaran, head retail banking, State Bank of India.

“We have got a good response to this scheme too,” he said, while declining to comment on the exact number of loans disbursed to people opting for green building homes.

According to the Indian Green Buildings council (IGBC), “A green building is a construction that uses lesser energy, water and natural resources, creates less waste and is healthier for the people living inside compared to a standard building.”