Banks rush to builders for tie-ups

AHMEDABAD: Banking and housing finance institutions are literally running after real estate developers for tie-ups for housing loans.
"Many builders have actually taken advantage of the cut-throat competition among financial institutions and joined hands with four to five banks to give alternatives to their customers," said Shekhar Patel, president of GIHED.
Nitin Bhat, national head of a real-estate developer company said that it's a win-win situation for everybody. "Financial institutions are getting business, builders are assured of payments and customers will have quality services at their door step at encouraging interest rates," he said.
"We met almost all the builders and offered them various housing finance schemes during the event. There were positive responses and a few of them have already shown interest in tie-ups," said Murali Ramaswami, head of Gujarat region for Vijaya Bank, who came along with a team of around five senior officials.
Even an established player like State Bank of India (SBI) also ensured that it retained the top position. Not only did SBI have a stall at the venue but the largest bank had also appointed an official for fresh tie-ups. "We have an alliance with almost all the top builders in the town," said SV Shah, a senior marketing personnel.
Representatives of private banks like HDFC, Axis Bank and Reliance Finance among others were even more aggressive to grab the opportunity to expand their housing finance business.