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Snapshot of SBI Plot Loans
Loan Amount | Up to Rs.15 crores |
Loan Margin | Up to 70% of Plot Value |
Interest Rate | Starts at 7.50% |
Repayment Tenure | Up to 10 years |
Processing Fees | Rs.10000 – Rs.30000 |
SBI leads the home loan segment across the country with low-interest rates and processing charges. SBI is the most sought after lender for a home loan in India. They serve millions of home loan customers across the country.
Though purchasing a fully constructed house or apartment has its benefits, investing in a residential plot of land has been an integral part of the investment portfolio for most Indian households. Borrowers can get an SBI Home Loan to buy a residential plot of land on which they would like to construct a house on a late date.
Overview of SBI Realty Home Loans (SBI Plot Loans)
Loans to purchase a residential plot of land can be availed under the SBI Realty Home Loans. The bank requires the borrower to build the house within 5 years of the loan being disbursed. Under the SBI Realty Home loan, the borrower can acquire a home loan to build a house in addition to taking out a loan to buy a plot of land. Here are some salient features of this loan product:
- Get up to 70% of the plot value as a loan
- Loan amounts of up to Rs.15 crores can be availed
- Low interest rates – get one of the lowest interest rates in the market
- Get low processing fees – the loan also offers one of the lowest processing fees
- There are no prepayment penalties – if you chose to repay the loan earlier, there are no penalties for that
- No hidden fees or charges – the loan process is completely transparent without any hidden fees or charges
- Interest charges on Daily Reducing Balance – this method results in a lower interest accrual
- Longer repayment – get repayment tenure of up to 10 years to repay the loan comfortably
- Women borrowers can get an interest concession
Additional Read: Top 5 Plot Loans in India
Interest Rates on SBI Realty Home Loan
Current SBI home loan interest rates are based on the external benchmark rate (EBR), which is linked to the Reserve Bank of India's (RBI) repo rate. Any change in the repo rate will affect the EBR. The latest EBR Rate is at 6.65% as of 01.05.2021
| Loan Amount | Interest Rate |
|---|---|
Up to Rs 30 Lacs | EBR + 85 BPS |
Above Rs 30 lacs to Rs.75 Lacs | EBR + 95 BPS - 7.60% |
Above Rs 75 Lacs | EBR + 105 BPS - 7.70% |
Points to Note
- A premium of 10 bps will be added to the Card Rate for customers who fall under Risk Grade 04 to 06.
- 05 bps concession will be available to women.
- A premium of 05 bps will be added for the customers who are not having a salary account with SBI.
What are the eligibility criteria to get SBI Realty Home Loans to purchase a plot?
The SBI Realty Home Loan is pretty similar to regular home loans in terms of eligibility. Here are the criteria:
- The applicant should be an Indian resident
- Should be in the age group of 18 – 65 years
- Can be a salaried or self-employed individual
- A minimum credit score of 700 and above is desirable
Also Read: Tips To Fix Your Credit Score Quickly
What are the documents required for the SBI Realty Home Loan?
Identity Proof
Address Proof
- Voter ID
- Passport
- Latest Utility Bills
- Property tax receipt
Income proof for salaried individuals
- Original salary certificate from the employer
- TDS certificate on Form 16
- Copy of acknowledged IT Returns for the last two financial years
Income proof 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
Additional documents
- Personal assets and liability statement
- Employer Identity card
- Completed application form
- Bank account statement/ passbook for last six months
- Signature identification from present bankers
- Guarantor documents (wherever applicable)
- Photographs of the applicants
How is a plot loan different from a home loan?
SBI has both home loans and plot loans. Though both the loans allow you to realize your dream house, there are major differences in the loan types.
| Home Loans | Plot Loans |
|---|---|
Loans can be availed for up to 80-85% of the property value | The loan amount percentage is only between 50-70% of the land value |
You can get a loan for an under-construction property | You have to build the house on this land within 5 years of plot purchase |
You get major income tax benefits for a home loan | No such tax benefits for plot loans |
You can get home loans on all types of properties from any area or locality | Plot loans can be availed only to buy residential plots located in a corporation or municipality |
NRIs can easily get a home loan to purchase a house | Plot loans are generally not issued to NRIs |
The repayment tenure is quite high; up to 30 years | Maximum of 15 years repayment tenure only |
How to apply for SBI Realty Home Loans to buy a residential plot?
These days everything is made online; you can conveniently start your loan application process online. If you have any queries, you can call the bank anytime to get them cleared;
- Apply online on the SBI home loans website
- Walk into your nearest SBI branch and speak to the loan officer
SBI Plot Loans FAQs
1. In India, how do I apply for a plot loan?
Customers can apply for a plot loan in a variety of ways through banks and NBFCs. It can be done from anywhere by using the online and customer service options, or by visiting the nearest branch to speak with a representative about the options and then applying. Customers can select any option that they are comfortable with.
2. What is the turnaround time on SBI Realty Home Loans for purchasers of plots?
The usual turnaround time is around 1 week to 10 days, provided all the documents are submitted correctly.
3. Should I construct a house on the plot immediately?
SBI stipulates that you complete construction of the said house on the purchased plot within 5 years of loan disbursal.
4. What is the maximum loan amount I can avail under SBI Realty Home Loan?
One can get up to Rs.15 crores to purchase a plot under the SBI Realty Home Loan scheme.
5. I have purchased the plot, but need money to start the construction. What can I do?
Borrowers can also get a loan to construct a house under the SBI Realty scheme.
6. Can I apply for the loan jointly?
Yes, you can apply for this loan individually or jointly.
7. How much concession is offered to women borrowers?
Women borrowers can bet an interest discount of 0.05% on their SBI Realty Home Loan.
8. What is the processing fees on SBI Realty Home Loans?
SBI Charges a consolidated processing fee of 0.40% of the loan amount plus applicable GST subject to a minimum of Rs.10000 + GST and a maximum of Rs.30000 + GST.
Sbi Plot Loan - Customer Reviews
Ranjeet Kumar Bharti
Thanks for good Information
