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
| Key Highlights | Details |
|---|---|
| Interest Rates | Starting at 8.50% 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 |
Eligibility Criteria
To qualify for an SBI Plot Loan, applicants must meet the following criteria:
| Eligibility Criteria | Details |
|---|---|
| Age | Minimum 18 years; maximum 65 years at loan maturity |
| Residency | Only resident Indians are eligible |
| Documentation Requirements | Similar to home loan requirements; varies for salaried and self-employed |
Required Documents
These are the documents that are needed for a successful loan application:
| Required Documents | Details |
|---|---|
| For Salaried Individuals | – Salary certificate |
| – IT returns for the last two financial years | |
| For Self-employed/Professionals | – IT returns and assessment orders for three years |
| – Proof of advance income tax payments | |
| Common Documents | – Identity proof (e.g., PAN card, voter ID) |
| – Address proof (e.g., utility bills) | |
| – Bank statements for the last six months | |
| – Passport-sized photographs |
Additional Features
- Loan-to-Value (LTV) Ratio: While specific LTV ratios are not disclosed, they typically consider factors like credit profile and property location.
- Application Process: Prospective borrowers can apply online via the SBI website or visit a local branch.
This comprehensive overview provides potential borrowers with essential information regarding SBI’s Plot Loan offerings, enabling informed decision-making when considering land purchases.
Also Read: Check The Tax Benefits of Opting For Home Loans.
SBI Plot Loan Interest Rates – Updated 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:
Interest Rates
- Starting Rate: The interest rates for SBI plot loans start at 7.50% per annum.
- Rate Structure Based on Loan Amount:
- Up to ₹30 lakhs: EBR + 85 bps (approximately 7.50%)
- ₹30 lakhs to ₹75 lakhs: EBR + 95 bps (approximately 7.60%)
- Above ₹75 lakhs: EBR + 105 bps (approximately 7.70%)
- Note: The current External Benchmark Rate (EBR) is linked to the Reserve Bank of India’s repo rate, which can influence these rates.
SBI Plot Loan Interest Rate Highlights
| CIBIL Score | Realty Loan Interest Rates |
|---|---|
| 750 and above | 9.50% |
| 700-749 | 9.65% |
| 650-699 | 9.75% |
| 550-549 | 9.85% |
| > NTC / No CIBIL Score / -1 | 9.65% onwards |
Loan Features
- Maximum Loan Amount: Up to ₹15 crores.
- Loan Margin: Up to 70% of the plot value.
- Repayment Tenure: Up to 10 years, with the requirement that the borrower must construct a house on the plot within five years of disbursement.
- Processing Fees: Ranges from ₹10,000 to ₹30,000, depending on the loan amount.
Eligibility Criteria
To qualify for an SBI plot loan, applicants typically need to provide:
- Identity proof
- Address proof
- Income proof (for both salaried and self-employed individuals)
- Additional documents as required by the bank.
Comparison with Home Loans
SBI also offers home loans that differ from plot loans in several aspects:
- Home loans can cover up to 90% of the property’s cost, while plot loans cover only 50-70% of the land value.
- Home loans have a longer repayment tenure of up to 30 years, compared to a maximum of 10 years for plot loans.
- Significant tax benefits are associated with home loans, which are not available for plot loans.
Special Offers
SBI provides a Combo Home Loan, which allows borrowers to finance both the purchase of a plot and its construction under a single loan arrangement, starting at an interest rate of 8.50%.
In summary, SBI designs its plot loan offerings to facilitate residential land purchases with attractive interest rates and manageable repayment terms, making them a viable option for prospective homeowners.
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:
Processing Fees
- Standard Processing Fee: Up to 1.50% of the loan amount, plus applicable taxes.
- Alternative Fee Structure: Some sources indicate a lower fee of 0.35%, with a minimum of ₹2,000 and a maximum of ₹10,000, plus GST.
Other Charges
- Stamp Duty and Statutory Charges: These are applicable as per state laws.
- Cheque Swapping Charges: ₹500.
- Amortization Schedule Charges: ₹200.
- Overdue EMI Interest: A penalty of 2% per month on the overdue principal or EMI amount.
- Prepayment Penalty: No prepayment charges are applicable if the entire loan amount is repaid during the tenure.
Summary Table of Charges
| Charge Type | Amount/Percentage |
|---|---|
| Processing Fee | Up to 1.50% or 0.35% (min ₹2,000) |
| 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 |
These fees are designed to cover the administrative costs associated with processing loan applications and maintaining accounts. It’s advisable for potential borrowers to confirm the exact fees applicable at the time of application, as they may vary based on promotions or changes in bank policy.
Also Read: Calculating Stamp Duty and Registration Charges For Property in India – Updated 2025.
What Are The Documents Required For Plot and House Constructions From SBI Home Loans
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:
Identity Proof
- PAN Card
- Aadhaar Card
- Voter ID
- Passport
- Driving License
Address Proof
- Aadhaar Card
- Passport
- Driving License
- Utility Bills (e.g., electricity bill, water bill)
- 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
- The applicant must be an Indian citizen aged between 21 and 65 years.
- The loan covers up to 80% of the property cost, with interest rates ranging from approximately 9.45% to 15.00% per annum depending on various 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.
What is the Eligibility Criteria for SBI Plot Loans?
SBI offers plot loans with specific eligibility criteria for individuals looking to purchase residential or commercial plots. Here are the key requirements:
Eligibility Criteria
- Age:
- Applicants must be between 21 to 65 years old at the time of loan application and must not exceed 65 years at loan maturity.
- Citizenship:
- Only Indian citizens are eligible to apply for SBI plot loans.
- Income Requirements:
- For salaried individuals, a minimum net monthly income of ₹25,000 is required.
- For self-employed individuals, the minimum net monthly income should be ₹50,000.
- Credit Score:
- A credit score of at least 650 is necessary, with higher scores potentially leading to better interest rates.
- Loan Amount:
- SBI provides loans covering up to 80% of the property cost, with a maximum loan amount of up to ₹15 crores.
- Repayment Tenure:
- The loan can be repaid over a tenure of up to 15 years.
- Property Use:
- The loan is specifically for purchasing plots intended for residential or commercial development, and construction must commence within five years of loan disbursement.
Documents Required
Applicants must submit various documents, including:
- Identity proof (e.g., PAN Card, Aadhaar Card)
- Address proof (e.g., utility bills)
- Income proof (salary slips for salaried individuals; business documents for self-employed)
- Bank statements for the last six months.
These criteria ensure that applicants are financially stable and capable of repaying the loan while allowing SBI to assess the risk involved in lending.
SBI Plot Loan EMI Calculator
How To Use The SBI Plot Loan EMI Calculator?
- Adjust the slider to set your desired loan amount.
- Use the slider to select the applicable interest rate.
- Select your preferred repayment period using the tenure slider.
- The calculator will display your monthly EMI, total interest, and overall payment summary.
- Check the pie chart for a visual breakdown of the principal and interest components.
Features of SBI Plot Loan
The SBI plot loan offers a number of beneficial features for those looking to purchase land:
- Competitive Interest Rates: The interest rates for the SBI Plot Loan are designed to be competitive, making it an affordable option for borrowers.
- Low Processing Fees: This loan is characterized by low processing fees, reducing the overall cost for applicants.
- No Hidden Charges: Transparency is a key feature of the SBI Plot Loan, with no hidden fees involved in the process.
- Free Prepayment: Borrowers can make prepayments on their loan without incurring any charges, which can lead to savings on interest.
- Interest Calculation: This loan uses the daily reducing balance method to calculate interest, potentially reducing the amount of interest paid over time.
- Repayment Tenure: The loan offers a repayment period of up to 10 years, providing flexibility in managing long-term financial planning.
- Interest Concession for Women: Women borrowers benefit from a concession on the interest rate, which is part of SBI’s initiative to support women’s homeownership.
What is a Plot Loan?
A plot loan, also known as a construction loan, specifically caters to individuals looking to purchase a residential plot or a piece of land. Banks and financial institutions offer this type of loan to those planning to build a house on the acquired plot.
Unlike home loans that cover the cost of purchasing already constructed properties or those under construction, plot loans cover only the purchase of the land itself. The terms and conditions, such as loan tenure, interest rate, and down payment, can vary significantly from those of a typical home loan.
Also Read: Plot Loans in India – Check EMI, Interest Rates, and Eligibility Criteria – Updated 2025.
Difference Between Plot Loan and Regular Home Loan
Understanding the difference between a plot loan and a regular home loan is crucial for potential property buyers, as each serves a unique purpose in real estate financing.
Banks design regular home loans for purchasing already constructed properties, while they specifically design plot loans for buying pieces of land where owners intend or must construct buildings.
| Aspect | Plot Loan | Regular Home Loan |
|---|---|---|
| Purpose | Specifically for financing the construction of a building. | For purchasing an already constructed house or apartment |
| Disbursement | Funds are released in stages as construction progresses. | Lump sum disbursement at the time of loan approval |
| Interest Rates | Typically higher due to the perceived higher risk | Generally lower compared to construction loans |
| Documentation | Requires detailed building plans, budgets, and timelines | Requires property details and proof of sale |
| Inspection | Regular inspections are required to release funds | Inspection before loan approval, not typically ongoing |
| Risk | Higher risk as construction may face delays or budget overruns | Lower risk, as the property is already built |
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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.
Estimated reading time: 12 minutes
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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