In today’s competitive market, securing a plot of land represents more than just an acquisition. It’s a strategic investment in one’s future. The SBI Plot Loan (also known as the SBI Realty Home Loan Scheme) facilitates this investment by offering tailored financial solutions. This empowers individuals to navigate the complexities of the real estate market.
SBI Plot Loan Key Highlights
State Bank of India (SBI) offers a dedicated Plot Loan scheme designed for individuals looking to purchase land for residential purposes. Here are the key details and highlights of the SBI Plot Loan:
| Key Highlights | Details |
|---|---|
| Interest Rates | Starting at 8.00% per annum (aligns with SBI Home Loans rates) |
| Loan Amount | Up to Rs 15 crore |
| Tenure | Up to 10 years |
| Processing Fees | 0.35% of loan amount; minimum Rs 2,000, maximum Rs 10,000 + applicable GST |
| Prepayment Penalty | No penalty |
Data Source: SBI Home Loan Interest Rates
SBI Plot Loan Interest Rates 2025
The State Bank of India (SBI) offers various loan products for purchasing residential plots, with competitive interest rates and flexible terms. Here are the latest details regarding SBI’s plot loans:
| Loan Type | Realty Loan Interest Rates |
|---|---|
| SBI Realty Plot Loan | 8.00% p.a. onwards |
Check Out: SBI Home Loan Eligibility Calculator
SBI Plot Loan Eligibility Criteria
| Parameter | Details |
|---|---|
| Resident Type | Resident Indian |
| Minimum Age | 18 years |
| Maximum Age | 65 years |
| Loan Tenure | Up to 10 years |
Data Source: Check the official updated interest rates for plot loans from the State Bank of India official website.
SBI Plot Loan Processing Fees and Charges
The processing fees and charges for a plot loan from the State Bank of India (SBI) can vary based on the specific scheme and loan amount. Here’s a detailed overview:
| Charge Type | Amount/Percentage |
|---|---|
| Processing Fee | Up to 1.50% or 0.35% (min ₹2,000) of the loan amount |
| Stamp Duty | As per state laws |
| Cheque Swapping Charges | ₹500 |
| Amortization Schedule Charges | ₹200 |
| Overdue EMI Interest | 2% per month on overdue amount |
| Prepayment Penalty | Nil |
Also Read: Calculating Stamp Duty and Registration Charges For Property in India – Updated 2025.
SBI Plot Loan Documents Required
To apply for a plot loan from the State Bank of India (SBI), applicants need to prepare a comprehensive set of documents. Below is a detailed list of the required documents categorized by type:
| Category | Documents/Details |
|---|---|
| Identity Proof | – PAN Card. – Aadhaar Card. – Voter ID. – Passport. – Driving License. |
| Address Proof | – Aadhaar Card. – Passport. – Driving License. – Utility bills (e.g., electricity and water bills). – Property Tax Receipt. |
| Income Proof | For Salaried Individuals: – Last 3 months’ salary slips or latest salary certificate. – Bank statements for the last 6 months. For Self-Employed Individuals: – Income Tax Returns (ITR) for the last 2 years. – Profit and Loss Account Statement certified by a Chartered Accountant. – Business registration documents. |
| Other Financial Documents | – Form 16 (for salaried individuals). – Loan application form (filled out). – 3 passport-sized photographs. |
| Property Documents | -Title deeds of the property. -Any existing property documents related to the plot being purchased. |
| Additional Information | – Applicant must be an Indian citizen between 21 and 65. – Loan covers up to 80% of the property cost. – Interest rates range from approximately 9.45% to 15.00% per annum depending on factors such as credit score and loan amount. |
This documentation is essential for processing the loan application and ensuring compliance with SBI’s lending policies.
Check Your Credit Score Today to Efficiently Plan Your Dream Home Purchase.
Also Read: Plot Loans in India – Check EMI, Interest Rates, and Eligibility Criteria – Updated 2025.
Plot Loan Tax Benefits
- If you purchase a plot without intending to construct a home (e.g., holding it as a long-term investment), no tax deductions apply under Sections 80C or 24B of the Income Tax Act.
- If you buy a plot with plans to build a house, villa, or bungalow , both your plot loan (for land purchase) and home loan (for construction) qualify for tax deductions.
Tax Benefits Under Section 80C
- Up to ₹1.5 lakh annually can be claimed as a deduction for the principal portion of your plot loan repayments.
- This applies only if the plot is used for constructing a self-occupied or rented-out property.
Tax Benefits Under Section 24B
- Interest paid on both your plot loan and home loan qualifies for deduction under Section 24B.
- For self-occupied properties, the annual limit is ₹2 lakh (or ₹3.5 lakh if the loan was sanctioned before April 1, 2019).
- For rented properties, there’s no cap on interest deductions.
Additional Exemptions
- Title transfer fees and enrollment fees paid in the same year the home’s construction is completed are also included in the exempted amount under Section 80C.
Suggested Read: How to Calculate Agricultural Land Area?
Compare Top Banks Plot Loan Interest Rates
| Bank | Up to Rs. 30 Lakh | Above Rs. 30 Lakh to Rs. 75 Lakh | Above Rs. 75 Lakh |
|---|---|---|---|
| SBI Bank | 8.50% p.a. onwards | 8.5% p.a. onwards | 8.50% p.a. onwards |
| HDFC Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
| LIC Bank | 8.50% – 10.35% p.a. | 8.50% – 10.55% p.a. | 8.50% – 10.75% p.a. |
| ICICI Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
| Kotak Mahindra Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
| Punjab National Bank | 8.50% – 11.05% p.a. | 8.50% – 11.05% p.a. | 8.50% – 11.05% p.a. |
| Bank Of Baroda | 8.40% – 10.65% p.a. | 8.40% – 10.65% p.a. | 8.40% – 10.90% p.a. |
| Bajaj Housing Finance | 8.50% p.a. onwards | 8.50% p.a. onwards | 8.50% p.a. onwards |
| Axis Bank | 8.75%-10.30% p.a. | 8.75%-10.30% p.a. | 8.75%-10.30% p.a. |
| Bank of India | 8.40% p.a onwards | 8.40% p.a onwards | 8.40% p.a onwards |
| TATA Capital | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
The interest rates, maximum tenures, and other charges are subject to change, and it’s advisable to check with our experts for the most current information.
Suggested Read: Land Prices in India 2025
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Conclusion
The SBI plot loan is a strategic financial tool for those aiming to invest in land, featuring competitive interest rates, low processing fees, and no hidden charges. It stands out with perks like free prepayment, catering to both short-term affordability and long-term financial goals. The use of a daily reducing balance method for interest calculation and special concessions for women borrowers enhances its appeal across diverse profiles.
For more detailed guidance and to explore the best loan options tailored to your needs, visit Credit Dharma today. Make informed decisions with expert advice at your side.
Frequently Asked Questions [FAQs]
Yes, SBI offers the “SBI Realty” Home Loan scheme, which enables customers to purchase a plot for the construction of a house. Construction should commence within 2 years from the date of availing the loan.
Under the SBI Realty Home Loan scheme, customers can avail of loans up to ₹15 crores, subject to eligibility and repayment capacity.
The maximum repayment tenure for SBI Realty Home Loans is 10 years. However, the construction of the house on the plot should commence within 2 years from the date of loan disbursement.
Yes, customers who have availed SBI Realty Home Loan for purchasing a plot can also avail of another Home Loan for constructing a house on the same plot. Both loans can run concurrently.
Interest rates for SBI Realty Home Loans are linked to the bank’s Marginal Cost of Funds Based Lending Rate (MCLR) and are subject to change. For the most current rates, it’s advisable to check SBI’s official website or contact the nearest branch.
Processing fees for SBI Realty Home Loans are typically a percentage of the loan amount, subject to a maximum limit. For detailed information, please refer to SBI’s official website or visit the nearest branch.
SBI Realty Home Loans may offer a moratorium period during which the borrower is not required to make principal repayments. However, interest may still accrue may still accrue during this period. Specific details should be confirmed with SBI.
Applicants need to provide proof of identity, proof of address, proof of income, property documents related to the plot, and other documents as specified by SBI. A detailed checklist is available on SBI’s official website.
Yes, Non-Resident Indians (NRIs) are eligible to apply for SBI Realty Home Loans, subject to specific eligibility criteria and documentation requirements.
Tax benefits under Section 80C and Section 24 of the Income Tax Act are available only after the house’s construction is completed. Interest and principal repayments made during the construction period are not eligible for tax deductions.
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