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SBI (State Bank of India) is the largest name in the banking sector in our country. It is the largest bank and has a huge customer base not only in India but also overseas. The loan products of the bank offer a variety of loans that suit the needs of every category of customers. Among the various loans offered by SBI, the home loan segment of the bank has several options for customers to choose from based on their needs and eligibility.

Customers can take a plot loan from SBI to purchase a residential plot of land for future construction. In this guide, we walk you through the features, working and FAQs on SBI land loans for 2021.

How is a plot loan different from a home loan?

This is a common query that is raised when discussing land loans and plot loans. At first sight, they do seem to meet the same purpose, but they are quite different as we shall see:

  • A home loan is provided for a property that is built, under construction and or undergoing restoration and extension, while a land loan is predominantly given for the purchase of a piece of land or plot.
  • The Loan to Value Ratio for a home loan is about 80%, for loans above 3 lakhs the LTV is 90%; while the LTV for a plot is 50-70%
  • The tax benefits which are available on a home loan are not available on the land and plot loans.
  • Home loans tend to be longer up to 30 years even, while the land plot loans are extended up to 15 years.

What is SBI Plot Loan?

The product name for the SBI plot loan is SBI Realty Home Loan. Under this loan, a person can get a loan for purchasing a plot of land for the construction of a home. The bank requires the borrower to construct the house within 5 years from the date of sanction of the loan. Besides taking a loan to buy a plot of land, the borrower can also get a home loan for the construction of a house under the SBI Realty plan.

Salient Highlights of SBI Plot Loans

  • Low-Interest Rates – Provide a competitive interest rate that is the lowest in the industry.
  • Low Processing Fee – Don’t lose out on your loan amount in the form of a processing fee.
  • No Prepayment Penalty – You can complete the loan whenever you want without any prepayment penalties.
  • No Hidden Charges – All the charges will be communicated upfront hence no hidden charges.
  • Interest charges on Daily Reducing Balance – Continuous reduction in interest paid.
  • Repayment up to 10 years.
  • Interest Concession for Women Borrowers

Who is eligible for SBI Plot Loan?

There are a  few basic parameters that determine the eligibility for SBI Realty Home Loans. The bank has set the eligibility criteria to ensure that maximum applicants get the benefit of the plot loan of the bank. The details of the eligibility of the SBI Realty Home Loans are provided below.

Residential status

SBI provides Realty Home Loans only to the residents of the country. This implies that any person who is not a resident of the country cannot apply for the plot loan of the bank.

Age of the applicant

Another important eligibility criterion is the age requirement set by the bank. The age restrictions set by the bank for SBI Realty Home Loans are tabled below,



Minimum Age

18 years

Maximum Age 

65 years

Apart from the above parameters, the bank will also review other factors that determine the eligibility of the applicant for the plot loans of the bank. The other eligibility factors include,

  • The income of the applicant (repayment capacity)
  • Relationship with the bank
  • The credit score of the applicant
  • Loan amount required

What are the documents needed for SBI Land Loans?

The documents needed for SBI Realty Home Loans are basic KYC documents along with additional documents pertaining to the income proof of the applicant. The detailed list of documents needed for these loans are,

Identity Proof

The applicant can provide any of the following documents as an identity proof

  • Voter ID
  • Passport
  • Driving License
  • IT PAN Card

Address Proof

The applicant can provide any of the following documents as an address proof

  • Voter ID
  • Passport
  • Latest Utility Bills
  • Property tax receipt

Income Proof

The documents related to income proof are different in the case of salaried and non-salaried persons.

For salaried persons

  • Original salary certificate from the employer
  • TDS certificate on Form 16 
  • Copy of acknowledged IT Returns for the last two financial years

For Self-employed persons/ other IT assesses

  • Copy of acknowledged IT Returns or Assessment Orders for last three financial years
  • Copies of Advance Income Tax payments challans

Proof of Business Address

This is required in case of all non-salaried applicants

Bank Statement

The bank also requires a copy of the bank account or a bank passbook for the past 6 months

Signature Proof

The signature of the applicant has to be ascertained by the present bankers.

Additional documents

The additional documents include,

  • Personal assets and liability statement
  • Employer Identity card
  • Completed application form
  • Similar documents as stated above in case of a guarantor (wherever applicable)


The applicant also has to provide three recent passport size photographs as part of the application.

What are the highlights of the SBI plot loans?

The plot loan of the bank is equipped with many features that make it an attractive option for potential borrowers.

Some of such features are highlighted below.



Amount of Loan

The maximum amount of loan that can be sanctioned for eligible borrowers is Rs. 15,00,00,000 (Rs. 15 crores)

Rate of Interest

The rate of interest for SBI Realty Loans is,

  • Loan amount up to Rs.30,00,000 - 7.70% per annum
  • Loan amount above Rs.30,00,000 up to Rs. 75,00,000 – 7.80% per annum
  • Loan amount up to Rs.75,00,000 – 7.90% per annum
  • The bank provides a concession of 05 bps to women applicants
  • Customers not having an account with the bank will be charged an additional 05bps in the applicable interest rate.
  • High-risk candidates will be charged an additional 10 bps over the applicable rate of interest


10 years

Processing Fees

0.40% of the loan amount

Minimum Fees – Rs.10,000

Maximum Fees – Rs. 30,000

The Relationship between Credit Scores and Plot Loans

For any loan applicant, a credit score is an important facet that is considered by banks and other lenders when they are about to make lending decisions for any loan including your land loan. It is the onus of the applicant to maintain good credit health especially for those who are looking to take big-ticket and medium to long term loans, the presence of a poor credit score or no credit score could lead to unwanted situations such as unfavourable terms or sometimes even rejection. To avoid loan rejection, learn more about your credit health, start with a free credit score check on CreditMantri.

FAQs – SBI Plot Loan

1. Who can apply for SBI land loans?

SBI Plot loans or SBI Realty Home Loan can be applied by salaried and self-employed individuals.

2. What is the maximum loan amount that can be sanctioned for the purchase of a plot of land?

The maximum amount of loan that can be sanctioned by SBI for purchasing a plot of land is Rs.15,00,00,000 (Rs. 15 crores).

3. Are there any prepayment charges for SBI Plot loans?

No. There are no prepayment charges for SBI Plot Loans.

4. What is the main condition for SBI Realty Home Loan?

The main condition for SBI Realty Home Loan is constructing the house on the plot of land within a period of 5 years from the date of sanction of the loan.

5. Can a borrower get a loan for the construction of a house after getting a loan for purchasing the plot of land?

Yes. SBI provides home loans for the construction of the house after purchasing a plot of land. Borrowers that already have a loan under the SBI Realty Home Loan of the bank are also eligible for such loans.

6. How can I apply for a land loan from the State Bank of India?

SBI provides customers with multiple ways to apply for a land loan. You can apply online or visit the nearest branch to talk to a representative to discuss the options and then apply. Customers can choose any one of the options they are comfortable with.

7. How long will it take for SBI plot loan approval?

It will take at least 1 week for the bank to do its due diligence and verify all the documents.

8. Are there any concessions on interest for SBI Plot Loans?

There is a concession in the interest rate for women on the interest rate of SBI land loans

9. What is the processing fee for SBI land loans?

The processing fee is 0.35% of the loan amount starting from Rs. 2,000 to a maximum of Rs. 10,000

Sbi Plot Loan - Customer Reviews

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4 May 2020

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