SBI, Magicbricks tie up, eye up to 80L home buyers


Mumbai: State Bank of India, the largest bank in India, and Magicbricks, India’s leading property site, on Thursday entered into a tie-up under which about 500 real estate builders — whose projects SBI has rated and approved — will be on offer through the Magicbricks site.
The prospective home buyers on the portal will also be able to avail of SBI’s end-to-end online home loan-approval solutions, bank officials involved in the deal said. “It’s a deal under which all the four stakeholders can benefit,” Rajnish Kumar, MD (national banking group), SBI said. “The first is the prospective buyers who will have the comfort that the project has been rated and approved by SBI. The biggest fear among home buyers is where they are getting a clear title, if there are any environmental issues or other problems. Here they get the comfort that SBI has checked all that on their behalf,” he said. “To our builder partners we are providing a market and that is being offered through Magicbricks. For the bank, all those who looks at the deals being offered by Magicbricks, is a potential customer,” he said.

SBI will get money from builder to pass any thing then the people will get notified that their house was built on a gutter / Nala then they will say well those staff r now retired same old story will… Read MoreHenry DeSouza

Kumar also said that the negotiations between the two were going on for a few months now. With the economic cycle in need of some boost for revival, housing sector could be one of the catalysts for such a boost since it has a number of backward linkages. “Building and construction activities generate lot of employment…this also boosts sectors like cement, steel, etc,” he said.
According to Sudhir Pai, CEO, Magicbricks, about 65% of those buying a home go online at some time during the buying process. So it is apparent that the online medium has been able to aggregate a large number of users. However, he said, “One of the challenges is trust. Buyers ask if the title is clean? If all the approvals are in place? So is the listing genuine?” Secondly, during events like these which has a strong marketing push, transactions go up significantly. With about 500 builders on Magicbricks portal, Pai believes it’s possible to bring in about 60-80 lakh customers on the site.